Mincor has announced that it implement an orderly wind-down of mining operations at Widgiemooltha Gold Operations (WGO) in Western Australia.
Mincor Resources advises that it has completed the Strategic Review of the Company’s gold operations in Western Australia, which was first outlined in the March 2019 Quarterly Report and subsequently in the Company’s recent Investor Presentation released on 24 May 2019.
The outcomes of the Strategic Review, and a significant new gold intersection at the Widgiemooltha Dome are discussed further below. The Strategic Review is consistent with Mincor’s core focus on restarting nickel sulphide production in the Kambalda District.
The Board has decided that, due to the Company’s focus on its nickel activities, to implement an orderly wind-down of mining operations at WGO and to seek to divest those gold operations and other gold project areas.
On 1 August 2019, all mining will cease at WGO, with mining contractors being demobilised and the site transitioning to care and maintenance. The toll treatment agreement with Westgold, at their Higginsville Operations(HGO), expires on 30 June 2019. With HGO’s ownership scheduled to transfer to RNC Minerals during June, Mincor has agreed terms to commence a new short-term tolling agreement at the Lakewood processing facility in Kalgoorlie.
Under the Lakewood Agreement, Mincor expects to treat two parcels of ore during August and September 2019 which, depending on availability, will total between 80,000 and 90,000 tonnes.
The final aspect of the Strategic Review is to commence a divestment process of WGO, together with its gold rights at Bluebush and Jeffreys Find. Two of the unmined gold Mineral Resources post 1 August 2019 include:
Jeffreys Find (east of Norseman)–1.2Mt @ 1.7g/t Au for 61,600oz; and
2.Darlek (WGO located)–0.9Mt @ 1.9g/t Au for 53,100oz
Mincor believes there are substantial optimisation opportunities at WGO for a focused gold company, while there are also significant resource extension and regional exploration opportunities, as demonstrated by the stand-out gold intersection reported at Cassini today, which is part of the greater Widgiemooltha Dome project area.
Gold Intersection at Cassini
The Company has received the results of a diamond hole that was being drilled at Cassini for nickel, but which intersected a gold bearing quartz vein while progressing towards the nickel target zone(approximately 200m further down the hole from this gold intersection). The drill core image below contains visible gold and the assay retuned an outstanding high-grade intercept of 1.45mat 1,045g/t from 416m, which includes a spectacular interval of 0.21m @ 7,610g/t.
Given the significance of this intersection, Mincor is assessing its nature and the geological model in order to ascertain next steps. The Company believes this outstanding result clearly demonstrates the immense potential for high grade and significant gold endowment in the Widgiemooltha Dome region which may be available for a focused gold company.
Sternship Advisers are providing advisory services and coordinating the gold divestment process in conjunction with Mincor management.
Source: Company Press Release