Mincor told the ASX on Friday it had an initial ore reserve for the LN04a surface of 475,000 tonnes at 2.6 per cent nickel for 12,500 nickel tonnes.
The company said this increased ore reserves at the northern operations by 58 per cent, and total ore reserves across the Kambalda Nickel Operations by 18 per cent.
Mincor said it had incorporated the new ore reserve into an updated life-of-mine plan for the northern operations, extending the group reserve-backed mine life out to six years, up from five.
The LN04a surface is located in the exploration zone between the Long and Durkin North Mines in the northern operations area, which the company has dubbed “the golden mile”.
Mincor said LN04a remained open both up-dip and along strike as it extends along the golden mile towards Durkin North, with drill programs planned for the remainder of this financial year to unlock its full potential.
Mincor chairman Brett Lambert said this initial ore reserve had not only provided a brand-new mining front for the northern operations, but also proven the largely untapped potential of this vast exploration space to host significant, economic nickel ore reserves that could be fast-tracked into production utilising extensive existing infrastructure.
The company on Friday also released its September quarterly report, saying ramp-up activities were gaining momentum, with mined ore tonnes up by 33 per cent on the June quarter.
Mincor also issued production guidance for the 2022-23 year of 8000t-10,000t of nickel-in-concentrate, representing the first full year of operational ramp-up at Kambalda.
Mincor produced first nickel-in-concentrate at Kambalda in May, rejoining producer ranks after a six-year hiatus.
As well as the northern operations, Mincor has the newly developed Cassini mine as part of the overall Kambalda Nickel Operations, and the company said ore development continued to accelerate ahead of first stoping this quarter.
It also said the Cassini accommodation village was operational, ahead of schedule.
Mr Lambert said the ramp-up had gone well at both centres despite the challenging operating environment, with widely publicised labour and skills shortages and COVID-19 impacts across the WA mining industry.
“With additional stoping horizons becoming available at our northern operations, and first production stoping on track to commence in the December quarter at Cassini, we expect to see full scale production levels achieved in the second half of the financial year,” he said.
““We also welcomed our first residents into the brand-new Cassini accommodation village.
“Although minor works remain until full completion, being able to utilise this incredible facility ahead of schedule is a fantastic outcome for the Cassini operations teams, who are appreciating the shorter commute and comfortable surroundings.
“The completion of this facility will assist Mincor in the highly competitive labour market.”
Mincor had a consolidated cash balance of $54.8 million at September 30, down from $79.1 million at June 30.
