Projects

North Widgiemooltha Gold Resources

Mincor has five resource-level gold prospects near the Widgiemooltha town-site. These are the West Oliver, Darlek, Bass South, Flinders and Hronsky prospects. These prospects are located approximately 12 km from our Miitel mine and 35 km from the town of Kambalda.

West Oliver, Darlek, Bass and Flinders are situated within contiguous granted mining leases M15/48, M15/103 and M15/478, and the Hronsky prospect is within Prospecting Licence P15/5262 (MLA15/1830), a small licence located entirely within M15/48. Darlek, Bass and Hronsky have been mined historically by means of small pits, and Mincor sees potential for an integrated mine plan with a number of shallow gold pits mined in series.

Significant progress on the North Widgiemooltha gold resources was achieved with the completion of the Flinders, Darlek, Bass and Hronsky maiden Mineral Resources, bringing the total gold resource in the Widgiemooltha area to 177,080 ounces in five prospects. Pit optimisation studies subsequently demonstrated the economic potential of these prospects. This led to the decision to undertake a number of resource definition drilling programs to upgrade the resource to be used in feasibility studies. The results of this drilling program were strongly positive and the Mineral Resources are currently being updated to reflect the new data. The descriptions of the prospects given below do not yet reflect these drilling results.

Widgiemooltha resource-level projects

 

West Oliver Prospect

The West Oliver prospect is located 1.5 km west of Widgiemooltha. Historic RC drilling at West Oliver by Resolute Mining Ltd (Resolute) and WMC Resources Ltd (WMC) confirmed a mineralised gold trend with mineralisation in steeply dipping and north-easterly trending, quartz bearing shear zones within a basalt host. These ore bodies sub-crop at surface and were exploited by a number of artisanal shafts.

The Mineral Resource for West Oliver currently stands at 14,440 ounces of gold. Approximately 86% of the resource is classified as Indicated. Further technical details are provided in Mincor’s ASX release dated 5 May 2016 (click here).

Darlek Prospect

The Darlek pit is located 1.5 km west of the Widgiemooltha town-site and is believed to be on the same mineralised trend that hosts the Bass and West Oliver resources.

The Darlek pit was mined by Resolute from September 1999 to January 2000, with the ore processed at the Chalice Mill. Total gold production was 96,303 tonnes @ 2.5 g/t for 7,738 ounces, using a 1.3 g/t cut-off. Due to poor grade reconciliation and the low gold price at the time (A$475/ounce to A$500/ounce), mining was suspended and as a consequence the pit floor remains approximately 32 metres above its designed depth. The Darlek pit is currently dry and in good condition with minimal remediation required for the re-establishment of mining operations.

Historical RC drilling conducted by Resolute and WMC at Darlek, both around and beneath the pit, confirmed the presence of gold-bearing north-westerly trending sheeted quartz-veins in shear zones in basalt. Based on this historical drilling, Mincor has estimated a maiden Indicated and Inferred Resource of 897,750 tonnes @ 1.7 g/t for 47,620 ounces of gold, using a 0.5 g/t cut-off.

Mineralisation is hosted within flat-lying quartz veins in basalt and interflow sediments. The Darlek resource occurs as 27 discrete sub-parallel shear zones and one flat-lying zone.

For full details on the Darlek resource, see Mincor’s ASX release dated 2 June 2016 (click here).

Flinders Prospect

The Flinders prospect is located 2 km northwest of the Widgiemooltha town-site. Historical RC drilling by Resolute and WMC confirmed the presence of gold-bearing sheeted quartz-vein shear zones in basalt.

Based on this historical drilling, Mincor has estimated a maiden Inferred Resource of 1,328,900 tonnes @ 1.7 g/t for 73,910 ounces of gold, using a 0.5 g/t cut-off. Mineralisation is hosted within shallow dipping sheeted quartz-veins in basalt and interflow sediments. The Flinders resource occurs as 27 discrete sub-parallel shear zones and two sub-vertical zones.

While the drill density is similar to that at Darlek over its central portion, the geological interpretation is less robust, and for this reason the entire resource has been classified as Inferred.

Flinders is open to the north towards the Nottingham Castle historical workings and to the south towards West Oliver. Further details on the resource estimation process are in Mincor’s ASX release dated 2 June 2016 (click here).

Bass Project

The Bass project is located 1.5 km south of Widgiemooltha. The prospect is an extension of the mineralised trend from the Bass pit, which was previously mined by Resolute, produced 7,150 ounces of gold. RC drilling outside the pit by Resolute and WMC confirmed the presence of near-surface gold within north-westerly trending quartz-bearing shear zones in basalt.

Based on this historical drilling, Mincor has estimated a maiden Inferred and Indicated Resource of 398,150 tonnes @ 2.4 g/t for 30,340 ounces of gold, using a 0.5 g/t cut-off.

Mineralisation is hosted within flat-lying quartz veins in basalt and interflow sediments within the pit and plunged 40 degrees to the northwest. Away from the pit, the sub-vertical Bass Shear is the main control. The resource as reported lies wholly within Mincor’s tenement but continues to the lease boundary, which may affect the recovery of a portion of the mineralisation.

The resource is currently classified as Inferred and Indicated on the basis of drill-hole spacing and reconciliation to the mined out pit. Further technical details are provided in Mincor’s ASX release dated 5 May 2016 (click here).

Hronsky Project

The Hronsky project is located 1 km west of Widgiemooltha on P15/5262. The deposit was mined by Amalg in 1995 in a small confined tenement holding, producing 1,450 ounces of gold. Mincor purchased the tenement in 2014.

RC drilling at the Hronsky project has confirmed the presence of a near-surface mineralised gold trend within north-westerly trending quartz-bearing shear zones within a basalt host. Based on historical drilling, Mincor has estimated a maiden Indicated and Inferred Resource of 136,300 tonnes @ 2.5 g/t for 10,770 ounces of gold using a 0.5 g/t cut-off.

The ore bodies sub-crop at surface and the trend is outlined by a number of historical artisanal pits and within the pit mined by Amalg. They occur in a zone 10 metres wide, but individual lens are 1 to 5 metres wide. The maximum length is 900 metres and they have been drill tested to 150 metres depth but are still open in several directions. The Hronsky resource occurs in four discrete subparallel shear zones. Further technical details are provided in Mincor’s ASX release dated 10 March 2016 (click here).

A Mining Lease Application MLA15/1830 to convert the Prospecting Licence to a Mining Licence has been submitted to the Department of Mines and Petroleum (DMP).