Between 1979 and 1998, the mine Carnilya Hill Mine produced 1.4mt of ore grading 3.38% nickel for 47,000t of nickel metal. The mine closed in 1998 due to a depressed nickel price of approximately US$2.00 per pound.
Upon acquisition, the estimated nickel oxide and sulphide resource of the mine was 134,656t grading 3.56% nickel containing 4,796t of nickel metal.
The resource is contained in oxide ores in the previously unmined upper 30 metres of the mine and in sulphide ores in remnant blocks within previously mined areas and partially or unmined ore blocks accessible from the current mine development.
Geology
The ore body is massive to disseminated iron/nickel sulphide mineralisation that occurs on the contact between basalt and ultramafic rock units. Nickel ore is up to 5 metres thick with an average width of approximately 2 meters. Folding and faulting have extensively disrupted the ore body.
A west facing stylised cross sectional interpretation of the mineralisation is shown in Figure 1. Note that mineralisation commences at the surface and extends to a known vertical depth of at least 600 metres and extends over a 1.7km length.
An east-west longitudinal section (Figure 2) displays the outline of the nickel orebody at Carnilya Hill, including the results of downplunge drilling completed by Mincor.
Figure
1: Carnilya Hill Orebody Geology Cross Section
A
east-west longitudinal section (Figure 2) displays the outline
of the nickel orebody at Carnilya Hill as well as showing
the major areas of resource potential.
Figure
2: Carnilya Hill Mine - EW Longitudinal Section
History of View
Resources Operation
The Carnilya Hill nickel mine is 25 kilometres north east of Kambalda. The mine was purchased by View Resources in April 2003. The mine had previously been operated as a joint venture between WMC and BHP, and produced 1.4 million tonnes of nickel ore at a grade of 3.4% nickel prior to its closure and rehabilitation in 1998.
During 2003 View Resources undertook re-modelling of the remaining resource at Carnilya Hill including both sulphide and oxide ores. Economic assessment of the resource showed that Carnilya Hill could be operated profitably utilising narrow vein hand held mining techniques and diesel truck haulage. As the mine was fully developed in the identified resource areas, little capital development was required to allow mine re-opening.
Mine access was re-established in January 2004 with progressive opening of mine areas ongoing until the then available reserves had been exhausted. During the period between January 2004 and December 2005, View Nickel produced 38,594 tonnes of ore from the Carnilya Hill orebody at an average head grade of 2.17% nickel. Although View ceased production in December 2005, there was an appreciation that considerable upside potential still lay in the downplunge extensions of the orebody at its western end (figure 2) and all necessary mine infrastructure was maintained on site in anticipation of the future resumption of mining.
Given the costs involved in exploring the deeper targets, agreement was reached in October 2005 for Mincor Resources NL to farm into the Carnilya Hill nickel project. Under the terms of the agreement, Mincor were required to spend $2.5 million on nickel exploration over a three year period in order to earn a 70% interest in the joint venture. Mincor immediately implemented an aggressive exploration drill programme and within 12 months had earned their equity interest and also defined an indicated resource at Carnilya Hill containing 16,100 tonnes of contained nickel. This resource is currently the subject of a feasibility study, due for completion in the June quarter 2007. Assuming a positive result from the study and because of the excellent infrastructure on site the recommencement of production from Carnilya Hill could occur before the end of the year.
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