Mincor Resources has brought its seventh Kambalda nickel mine, the $28 million Carnilya Hill Project, into production on schedule and just 19 months after its discovery.

The first ore parcel has been delivered to surface a little over six months since construction began last July while underground development has intersected massive sulphide ore on the 10 Level as expected.

Mincor concluded an earn-in joint venture deal with View Resources in early 2006, enabling it to earn a 70% interest in the Carnilya Hill tenements, including the historic Carnilya Hill mine. The exploration team began work in March 2006 and the discovery hole was drilled in June 2006. Following a rapid drill-out phase, feasibility studies were completed and a formal development decision was announced in June 2007.

Mincor’s managing director David Moore says: “The delivery of this project in 19 months from discovery to production is a great credit to our exploration, engineering and mining teams. I also commend our mining contractor, RUC, for the excellent results they have achieved from a standing start.”

Production from Carnilya Hill is expected to ramp-up in the next six months to an average rate of about 15,000 tonnes of ore per month, or 5000 tonnes of nickel per annum. Current Ore Reserves are 483,500 tonnes @ 2.9% nickel for 14,000 tonnes of contained nickel metal, and the mineralized system remains entirely open at depth.

Mincor has signed a conditional Heads of Agreement to acquire View Resources’ 30% interest in the project. If settlement is achieved, the $22.5 million cash outlay is expected to produce a strong financial return based on current reserves, as well as providing Mincor with 100% of the future upside.

www.mincor.com.au