It is reported that Mincor is conducting a program of underground drilling at South Miitel designed to extend the mineralization beyond the current boundaries of the ore body.

Mincor said “Results immediately along plunge of the ore body have been muted so far but a hole targeted above the southern end of South Miitel returned a highly significant intersection.”

As per report, the intersection occurs as medium to high tenor massive sulphides hosted entirely in basalt.

Mr David Moore MD of Mincor said “These results could be very significant in the context of the geological setting of the Miitel ore system.”

Mincor’s Miitel mine which was its first Kambalda nickel mine, was placed on care and maintenance earlier this year as part of the company’s response to the fall in nickel prices on the back of the global downturn. But the miner said it expects to re-commence production in due course based on the almost untouched ore reserve at South Miitel a new ore body that was discovered by Mincor during 2005/6.

Despite the potential upside on the new find, the nickel price volatility is expected to continue in the short term.

(Sourced from www.theaustralian.news.com.au)