- Estrella Resources (ESR) enters an ore processing and offtake agreement with Glencore’s wholly-owned subsidiary, Murrin Murrin Operations
- Estrella will now move forward to extract between 2000 and 4000 tonnes of high-grade nickel sulphide ore from the 5A nickel mine in Western Australia
- Once extracted, the bulk metallurgical sample will be sold to Murrin Murrin Operations at an undisclosed price
- While Estrella says the commercial terms of today’s deal are confidential, it expects to see a “positive financial return” when considering the current high nickel prices
- ESR shares are up 40 per cent to trade at 1.4 cents at 2:41 pm AEDT
Estrella Resources (ESR) has entered an ore processing and offtake agreement with Glencore subsidiary Murrin Murrin Operations.
This deal positions Estrella to proceed with the bulk metallurgical extraction of between 2000 and 4000 tonnes of high-grade nickel sulphide ore from the 5A nickel mine in Western Australia.
Once extracted, the bulk metallurgical sample will be sold to Murrin Murrin Operations at an undisclosed price.
Estrella said the commercial terms of this agreement were confidential, but it expected to see a “positive financial return” from the extraction and sale of the bulk metallurgical sample when considering the current high nickel price environment.
Estrella has begun mobilising staff and contractors to the 5A mine to prepare for the extraction of the bulk sample.
From there it will be crushed and screened to size at the bulk sample laydown area before being loaded and transported to Murrin Murrin for processing.
The company said the Murrin Murrin high-pressure acid leaching route would allow it to fully develop the 5A nickel mine ore resource through simple pit cut-back mining methods and further develop remaining nickel resources at the Andrews, 5B and 1A nickel deposits.
ESR shares are up 40 per cent to trade at 1.4 cents at 2:41 pm AEDT.