Mincor Resources to launch landmark drilling program at Widgiemooltha

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Image credit: Mincor Resources ASX release

Mincor Resources is set to commence a major drilling program at its five Widgiemooltha gold resources later this month following the successful completion of open pit optimisation studies.

Image credit: Mincor Resources ASX release
Image credit: Mincor Resources ASX release

Mincor said the studies concluded that each resource, if confirmed by in-fill drilling, has the potential to host an economically viable gold mining operation at a gold price of just A$1,200 per ounce.

However, given the fact that 50% of the Mineral Resource in the pit shells is classified at the lowest confidence level (inferred), Mincor said that further drilling is required before final feasibility work may commence.

“Mincor will begin a major drilling program during July in order to in-fill and confirm the resource models and to test for resource extensions in a number of areas where the gold resources have not been closed off by previous drilling,” the company said in a statement.

“The results of the drilling program will be incorporated into updated resource models which will be used in the final Feasibility Study. The total cost of both the drilling program and Feasibility Study is estimated at $700.000. Drilling will start once final regulatory approvals are received, which is expected later this month.”

Mincor’s total gold inventory stands at 238,640 ounces in Mineral Resources across six projects, with five of these in the Widgiemooltha area containing an estimated total of 177,080 ounces of gold.

According to the company, the drilling will use Reverse Circulation drilling to in-fill resources that lie within the conceptual pit shells.

The company’s CEO Peter Muckily said the decision to commit to an in-fill drill program reflected Mincor’s growing confidence in the quality of its gold assets.

“The pit optimisation studies have demonstrated the economic potential of the existing gold resources at Widgiemooltha at a gold price well below current level. This gives us the impetus to move ahead immediately with a major in-fill program that will, if successful, lead directly to full-scale feasibility studies,” Mr Muckily explained.

“We have made rapid progress on the gold front, and if this program is successful we will have a solid foundation on which to build a gold mining business. All the while of course we are continuing to watch the nickel price closely, and while it remains well-below the trigger price we require to re-start nickel mines, it is clearly moving in the right direction.”