Mincor: massive sulphide intersection at Carnilya Hill
11:31, Monday, 6 October 2008
Sydney - Monday - October 6: (RWE Australian Business News) -
Mincor Resources NL (ASX:MCR) has confirmed the potential for
significant additions to current reserves at its recently commissioned
Carnilya Hill Nickel Mine after announcing a high-grade intersection of
4.63m at 12.75pc nickel (true width 2.66m) - the highest grade drill
intersection yet achieved at the mine.
Mincor said today that the intersection lay just outside the
current mineral resource boundary, pointing to additional potential in
the keel zone of the ore system at Carnilya Hill.
The drillhole, CUD0038, was the first in a new round of
underground infill diamond drilling required for mine planning purposes
as the new operation - which is part of Mincor's Northern Division of
Kambalda mines - continues its production ramp-up.
The ramp-up "commenced in earnest" during the September quarter,
with thick, high-grade nickel mineralisation now being driven along the
14 Level of the main 'B' ore zone. Production for the September quarter
is provisionally estimated at 9860 tonnes at 3.6pc nickel.
*****
Drillhole CUD0038 intersected the basal contact just outside the
lower boundary of the mineral resource. The resulting intersection
consists entirely of high-grade massive sulphides.
Managing director Mr David Moore said the result demonstrated
the previously untested potential of the lower boundary of the ore
system, which in places coincided with the keel of the Carnilya Hill
Syncline.
This structural setting is capable of producing high-grade and
structurally thickened nickel mineralisation, with the latest result
opening up a new area for detailed drill testing.
Nearby holes, drilled as part of the same operational program,
but not yet assayed, have also intersected massive sulphides, though
none as thick as CUD0038.
"This is an outstanding result," Mr Moore said.
"We always felt that there could be significant structural
enrichment in the keel zone but it was difficult to drill from surface.
"This is the first real indication of the tremendous grade and
metal upside that we believe exists at Carnilya Hill."
ENDS
Some welcome news from this nickel miner. Share price closed at $1.03 today, down 8 cents. Annual dividend is 12 cents, yielding 11.65% at today's closing price. Interesting to note that this company has no debt, as opposed to fellow nickel miner Minara (MRE). I'm confident the current dividend payout ratio can be maintained into the future. In my opinion, clearly a better investment than Minara (MRE). Comments anyone?