- Mincor Resources has bought the Long Nickel Operation in the Kambalda goldfields from the Independence Group.
- The mine strengthens the company’s hold in the Kambalda District.
- The Long operation is already in “mining ready” condition.
Nickel growth organisation, Mincor Resources has acquired, in full, the Long Nickel Operation from exploration company, the Independence Group. The project expands Mincor’s hold in the Kambalda gold fields, roughly 60km from Kalgoorlie, Western Australia.
The Managing Director of Mincor, David Southam, said “this is a well-timed strategic opportunity” for the company. Making a start in its plans to “restart a high-grade nickel sulphide mining district in the Kambalda District,” he added.
The Long Operation is said to hold 32,000 tonnes of nickel. Results from testing at the site show high-grades of 4.3Mt at 3.7 per cent nickel with 161kt of contained metal. The results from sites Mincor hold in Kambalda show 0.75Mt at 4.2 per cent nickel with 32kt of contained nickel.
The company said exisiting infrastructure at the Long Nickel Project is in “excellent condition” and is “well-maintained,” with IGO leaving it in a mining ready condition. The site has underground infrastructure, a fixed plant, and operating ventilation and pumps.
Mincor said are planning to leverage the infrastructure at the Long Nickel Project, citing the possibility to upgrade the resource base. As well as better connecting the site to their Durkin North Deposit.
The operations at the Long Nickel mine date back to 1979, which the average yearly production of nickel sitting at 10ktpa.
Terms of the acquisition include an upfront cost of $3.5 million, paid through 7,777,778 Mincor shares. Additionally, on the milestone of producing 2,500 tonnes on nickel at the Long operation a further $2 million will be paid. And on the milestone of producing 7,500 tonnes of nickel at the operation, a further $4 million will be paid.