Current Mining Operations

Miitel Nickel Mine

Mincor acquired the partially developed Miitel Mine from WMC Resources Ltd in 2001 and put it into production that year as the Company's first mine.  Since then Miitel has produced 1,450,000 tonnes of ore at an average grade of 3.30% nickel for 47,500 tonnes of contained nickel metal.  With past production added to June 2007 ore reserves, Miitel's total known nickel endowment is in excess of 65,000 tonnes of metal, and with future exploration success may ultimately exceed 100,000 tonnes of contained nickel metal - making Miitel one of the more siginficant of Kambalda's ore bodies.

The Miitel ore body has an elongated, near vertical but gently plunging configuration, making it ideal for mining.  The channel structure that hosts the ore lenses has proved very continuous.  Mincor discovered the North Miitel ore body in 2002 (which is now in production) and the South Miitel ore body in 2005 (which is now under development).  The overall mineralised system remains open to the north and south and subject to ongoing exploration.

Miitel Long Section showing Channel Structures

 

Mincor operates the Miitel Mine via a mining contractor (currently Barminco).  Mincor provides mining engineering, planning, surveying, geological and management expertise, while the contractor carries out the drilling and blasting and the transportation of the ore to surface.  The mine is largely mechanised and highly productive.

Production is currently underway at approximately 20,000 tonnes per month of ore grading 2.5% nickel.  

Otter-Juan Nickel Mine

Otter-Juan is Kambalda's oldest producing mine and by far its largest single producer.  The mine has been in near-continuous operation since 1970 and to end-June 2007 had produced 8.3 million tonnes of ore at an average garde of 3.56% nickel, for 297,000 tonnes of nickel metal.

Mincor acquired the Otter-Juan Mine in July 2007 through its acquisition of the privately owned company, GMM Pty Ltd.  Mining is expected to continue for at least the next four years at an annual rate of approximately 100,000 tonnes of ore grading 3.6% nickel, for 3,600 tonnes of nickel metal per annum (see opposite diagram).

Otter-Juan is an owner mining operation and is operated by a skilled residential workforce of Mincor employees.  Mining takes place at a depth of around 1,400 metres below surface.  Level development is done using jumbo drilling machines but stoping is carried out using hand-held mining techniques.  Due to the depth of operation, approximately 30% of the ore is left as pillars to provide stability to the rock mass.

The ore body is structurally complex, and is the strongest and most consistently mineralised channel structure in the Kambalda District.  The structural complexity provides many opportunities for the discovery of additional ore lenses, and historically many small but very high-grade lenses have supplemented production.

McMahon/Durkin and Otter-Juan (showing Channel Structures)

Apart from the down-plunge extensions of the main ore body, these additional high-grade ore lenses are the subject of ongoing exploration.  In addition there is a very substantial remnant mining opportunity which is now being investigated. 

Mariners Nickel Mine

The Mariners Nickel Mine was discovered and operated by WMC Resources Ltd between 1991 and 1999, over which period it produced 1,114,730 tonnes of ore at 2.53% nickel for 28,190 tonnes contained nickel metal.  It was closed by WMC and written off in 1999 due to flooding which coincided with a period of low nickel prices.  Mincor acquired the project at no cost as part of its acquisition of the Miitel Nickel Mine in 2001.

Mincor carried out feasibility studies on reopening Mariners during 2002 and 2003, and gave the project the go-ahead in 2004.  After six months of pumping the mine was de-watered and mining commenced.

Since then Mincor has extracted 388,000 tonnes at 2.11% nickel for 8,000 tonnes of nickel metal.  Mining is continuing at a rate of approximately 14,000 tonnes of ore per month.  The recent discovery of a new ore body below the current level of mining has greatly increased the value and life of the operation.

Mariners Long Section 

 

Mincor operates the Mariners Mine via a mining contractor (currently Barminco) under the same contract as Miitel.  Mincor provides mining engineering, planning, surveying, geological and management expertise, while the contractor carries out the drilling and blasting and the transportation of the ore to surface.  The mine is largely mechanised.

The exploration potential at Mariners Mine is very high, as recently demonstrated by the discovery of the new N09 ore body.  Mincor maintains an active exploration program of underground drilling at the mine. 

Redross Nickel Mine

The Redross Mine was one of the earliest discoveries in the Kambalda Nickel District.  It was discovered in 1968 by a joint venture between Anaconda and CRA.  It was mined via a vertical shaft between 1973 and 1978 by the joint venture.  The mine closed in 1978 after producing 411,000 tonnes of ore at 3.2% nickel for 13,140 tonnes of nickel metal - about half the then known ore reserve.

Mincor acquired the ground in 2001 as part of its acquisition of the Miitel Nickel Mine.  During 2002 and 2003 Mincor carried out studies on the feasibility of re-establishing mining operations.  Development commenced in October 2003.  Mincor developed a new decline to the ore body, and uses the old shaft for ventilation.

Redross Long Section

 

Mining commenced in 2004 and to the end of June 2007 had produced 324,000 tonnes of ore at 3.33% nickel for 12,900 tonnes of nickel metal.  The ore body is narrow but high-grade, and Mincor's mining methods (initial mechanised development with split firing of development drives, followed by hand-held mining methods in the stopes) have proved highly effective.  The mine started with a contractor but was moved to owner mining in 2006.  It is currently operated by a highly skilled and dedicated workforce of Mincor employees.

Production at Redross is continuing at approximately 10,000 tonnes of ore per month at a grade of around 3.2% nickel.  An extensive exploration program is underway at Redross with a view to extending the life of the mine beyond the current ore reserves. 

Wannaway Nickel Mine

The Wannaway Nickel Mine was discovered in the early 1980's and mined between 1984 and 1998 by WMC Resources Ltd, producing 553,000 tonnes at 2.3% nickel for 12,560 tonnes of nickel metal.  The original ore body was mined out by 1998, but WMC discovered a second, higher grade ore body alongside it.  Mincor acquired the mine from WMC in 2001, before any mining had taken place in this second ore body.

Mincor commenced mining in late 2001 and by end June 2007 had extracted 500,000 tonnes of ore at 3.06% nickel for 15,300 tonnes of nickel metal.  Once the main reserves had been mined out the operation moved to a remnant mining phase and was converted to an owner mining operation.  Production is currently proceeding at approximately 2,500 tonnes of ore per month at 2.5% nickel.

The mine is operated by a skilled and dedicated workforce of Mincor employees.  An ongoing exploration program is underway at the mine, with a view to discovering sufficient new ore to allow a return to a larger scale of operation. 

Coronet/McCloy Nickel Mine

Mincor acquired the Coronet and McCloy mining operations in July 2007 as part of its acquisition of private company, GMM Pty Ltd.  Coronet was discovered by WMC Resources Ltd in the early 1990s and put into production by that company in 1995.  McCloy was discovered later, and developed by GMM.  To end June 2007, the two ore bodies had produced approximately 62,000 tonnes of ore at a grade of 2.85% nickel for 17,700 tonnes of nickel metal.  Both ore bodies are mined as subsidiary operations to the bigger operation at Otter-Juan.

Although mining at Coronet and McCloy was originally scheduled to terminate in July 2007 due to the exhaustion of known reserves, additional reserves have been discovered, and it now seems likely that mining will continue until at least the end of calendar 2008.  In addition, Mincor has commenced an extensional exploration program which, if successful, could extend the life of these operations well beyond that date.