Name of the Project
Widgiemooltha gold project (WGP).

Location
The project is located 1.5 km west of Widgiemooltha and 30 km south-west of Kambalda, in the Coolgardie Shire in the Goldfields region of Western Australia.

Client
Mincor Resources.

Project Description
An enhanced feasibility study (EFS) has increased the project’s total mineral resources from 3.8-million tonnes grading 2 g/t gold to 4.3-million tonnes grading 2 g/t gold. Total reserves have increased from 823 590 t grading 2.7 g/t gold to 899 000 t grading 2.7 g/t gold.

The EFS has confirmed the viability of a gold mining operation initially based on the extraction of shallow ore reserves across eight openpits at Widgiemoolth, with the ore to be treated through a toll treatment arrangement with Westgold Resources subsidiary Avoca Mining, at the Higginsville gold processing plant.

The project is forecast to recover 71 700 oz of gold over an initial mine life of 29 months.

Potential Job Creation
The mine workforce comprises about 14 Mincor staff and a selection of consultants for the administration and management of the project.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of A$27.4-million, with a payback of six months.

Value
The project has a low upfront capital outlay of A$2.2-million.

Duration
Mining activities started in March.

Latest Developments
The Mincor board has approved the preproduction activities at the WGP.

The start of preproduction activities will ensure that the company remains on track to progress to full-scale operations at WGP in the March quarter.

The approved preproduction activities, which will include site earthworks, grade-control drilling and associated roadworks, are under way.

Key Contracts and Suppliers
Goldfields Technical Services (project management and technical services), Hampton Mining and Civil Services (preproduction earthworks).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Mincor Resources, tel +61 8 9476 7200, fax +618 9321 8994 or email mincor@mincor.com.au.