THE DRILL SERGEANT: Estrella Resources (ASX: ESR) has hooked onto a recent appreciation in the global nickel price to announce its intention to transition the company’s Spargoville nickel sulphide project near Kambalda in Western Australia, into a producing asset.
Estrella Resources has already got things well underway having engaged mining professionals to begin development activities at Spargoville.
A diamond drill rig has been secured to commence shortly armed with several aims, including updating the October 2019 Resource estimate with a major objective being to confirm the metallurgical ‘Top of Fresh’ zone for commencement of Definitive Feasibility Study (DFS) on 5A open pit mine.
“Timing is everything and the time is right for Estrella to kick-off development activities for our Spargoville nickel sulphide assets,” Estrella Resources managing director Chris Daws said in the company’s ASX announcement.
“Estrella bought the rights to mine and explore four nickel sulphide deposits, located 20 kilometres South-West of Kambalda, when nickel projects were out of favour.
“Nickel prices are now at high levels that provide strong financial metrics to warrant mine development.
“In response, we have put together an experienced team of mining professionals to assist the company transition through to producer status.
“It is a very exciting development, with drilling and a number of technical studies set to get underway which hold the potential to fast-track access to early cashflow and place Estrella as the next nickel producer in Australia.”