Western Areas doubles Spotted Quoll Mineral Resource
THE DRILL SERGEANT: There has been some action at the Spotted Quoll mine of Western Areas (ASX: WSA) with the company achieving a doubling of the Mineral Resource for the Spotted Quoll North Zone and the establishment of a maiden underground Ore Reserve.
The Mineral Resource for Spotted Quoll north has been doubled to 11,520 nickel tonnes with 80 per cent in the Indicated Category, consisting of an Indicated Resource of 113,500 tonnes at 9.3 per cent nickel for 10,573 nickel tonnes and an Inferred Resource of 21,520 tonnes at 11 per cent nickel for 2,367 nickel tonnes.
The maiden underground Ore Reserve has come in at 168,000 tonnes at 5.7 per cent nickel for 9,600 nickel tonnes, which the company claims to represent one of the highest grade nickel ore reserves in the world.
Western Areas explained the Ore Reserve in the North Zone replenishes approximately one year’s low cost production from the Spotted Quoll mine, extending the estimated mine life to now exceed10 years.
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Long section showing Spotted Quoll and Spotted Quoll North. Source: Company announcement
“The high-grade Reserves and Resources announced today from Spotted Quoll North reaffirm the world class quality of this asset,” Western Areas managing director Dan Lougher said in the company’s announcement to the Australian Securities Exchange.
“The latest upgrades from the extensions to the northern lode confirm our belief that Spotted Quoll has significantly more upside than the existing mine life which is already in excess of 10 years.
“The Ore Reserve…represents approximately one year’s additional production, and due to the significantly higher grade will facilitate a lower cash cost to mine compared to the already low cost of the main lode.”
“In addition, access to the northern lode is straight forward given the decline infrastructure is already established below the North reserve.
“When the company was mining the Spotted Quoll open pit we were mining grades of up to 11 per cent in the northern lode of the orebody.
“Ultimately the entire open pit yielded a grade of six per cent.
“We are starting to see our disciplined approach to near mine exploration be rewarded with the release of the maiden Ore Reserve for Spotted Quoll North and the recent announcements regarding the high-grade intersections at New Morning, a mere 2.8 kilometres away from the existing infrastructure at Spotted Quoll.”
Western Areas said it was currently working on an updated Mineral Resource for the Spotted Quoll main lode, the results of which it anticipates releasing in the company’s September quarterly report.