Mincor has announced that it implement an orderly wind-down of mining operations at Widgiemooltha Gold Operations (WGO) in Western Australia.


Image: Mincor Resources has completed the Strategic Review of its gold operations in Western Australia. Photo courtesy of Steve Bidmead from Pixabay.

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.

Strategic Review

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