Mincor approves gold project

Perth-based Mincor Resources has approved the development of its Widgiemooltha gold project, located in the Goldfields, with mining set to commence next month.

The company recently completed an enhanced feasibility study, which outlined an initial capital outlay of $2.2 million, with 71,700 ounces of gold over an initial two-year mine life.

The company’s mineral resources inventory at Widgiemooltha and near Norseman contains approximately 335,000 ounces across six prospects.

Mincor has signed a one-year toll treatment agreement with Westgold Resources to process ore at its Higginsville processing plant.

The company has also signed a contract for mining services with Hampton Transport Services, while Goldfields Technical Services has also been engaged.

Managing director Peter Muccilli said the project would provide significant value to Mincor.

“The project has a very low upfront capital requirement and can be funded from existing cash reserves,” he said

“The project is expected to generate cash flow for the company for the next two and a half years, with potential to extend the mine life through further exploration success.

“The decision to proceed with the development of the Widgiemooltha gold project provides Mincor with a path back to short term cash flow.

“At the same time we are beginning to see some exciting results from our nickel exploration activities, as evidenced by the recently announced high-grade results from Cassini.”

Shares in Mincor finished up 1.4 per cent at 36 cents each.