Mincor Resources is planning to pursue gold mining opportunities on its Kambalda tenements, while continuing to pursue long-term developments at its core nickel projects.
Mincor Resources is planning to pursue gold mining opportunities on its Kambalda tenements, while continuing to pursue long-term developments at its core nickel projects.
In a statement today, Mincor said it has a number of gold prospects within its Kambalda landholding in the Goldfields region and, coupled with the resurgence in the gold price, would provide a strong foundation for growth.
“The essence of the company’s strategy is to maintain and enhance its option on the nickel price, while moving aggressively to exploit the gold potential of its Kambalda landholdings,” it said.
“The first part of this strategy requires the maintenance of the company’s existing Kambalda nickel assets while reducing their holding costs to an appropriate level and at the same time enhancing their value – by both expanding the total nickel inventory and further strengthening the economics of the projects.
Mincor released details of definitive feasibility studies on its Durkin North and Miitel/Burnett nickel projects, which form part of the Kambalda tenements, which outline a pre-production cost of $32.4 million (for both projects combined).
In a statement, Mincor chief executive Peter Muccilli said the gold and nickel endowment of the company’s Kambalda landholdings put it in a strong position to rebound quickly from the nickel downturn.
“The two feasibility studies underscore the value of our option on a recovering nickel price, while the emerging gold opportunities could deliver strong near-term cashflows as well as tremendous exploration upside,” Mr Muccilli said.
“The company implemented what it believed to be an effective strategy to rebuild shareholder value following the closure of its Kambalda nickel operations earlier this year in response to the collapsing nickel price.
“With that behind us, we can now turn to the future and I believe we have a clear pathway to build significant value in the company.”
Mr Muccilli said the feasibility studies completed on the nickel projects provided a solid foundation to return to production once nickel prices improve.
“In the meantime we have a genuine opportunity to determine the viability of our gold assets,” he said.
Mincor shares closed 4.5 per cent lower to 21 cents.
