Name of the Project
Kambalda nickel restart project.

Location
The Kambalda district of Western Australia.

Project Owner/s
Mincor Resources.

Project Description
A definitive feasibility study has proposed the development of a mining operation pro­duc­ing 63 000 t of recovered nickel-in-concentrate with relatively low capital intensity.

The initial five-year operation is based on 2.5-million tonnes of ore grading 2.9% nickel for 71 000 t of contained nickel-in-ore and 5 000 t of copper-in-ore.

The Mincor nickel operations are expected to comprise the Cassini and Northern operations (Long and Durkin North) at the start, with the Miitel mine contributing towards the back half of the project life.

The flagship Cassini mine (a greenfield discovery by Mincor) is forecast to contribute 56% of the total nickel-in-concentrate production over the initial life of the project.

The mine plan involves underground extraction of the Cassini deposit through a boxcut and decline, mining 1.2-million tonnes of ore at an average nickel grade of 3.3% over five years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7% discount rate, of $305-million and an internal rate of return of 98%, with a payback of 12 months.

Capital Expenditure
Preproduction capital is estimated at $68-million, mainly associated with mine development and related infrastructure.

Planned Start/End Date
First nickel in concentrate is scheduled for late in the first quarter of next year.

Latest Developments
Mincor Resources plans to raise A$65-million to derisk production at its Kambalda operation.

The miner will place more than 46.8-million shares, at A$1.28 a share, to investors under the company’s existing placement capacity, raising an initial A$60-million.

The placement price represents an 11.1% discount to Mincor’s last closing price and a 2.4% discount to the company’s 20-day volume weighted average share price.

Prior to the launch of the share placement, a global natural resource fund had committed to a minimum cornerstone investment of A$30-million.

In addition to the share placement, the company has also announced a share purchase plan, which will enable existing shareholders to subscribe for up to A$30 000 worth of new shares in the company, with the aim of raising a further A$5-million.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Mincor Resources, tel +61 8 9476 7200 or email mincor@mincor.com.au.