Estrella Resources Limited (ASX: ESR) continues to report strong progress with its Definitive Feasibility Study (DFS) to restart the high-grade Spargoville 5A Nickel Mine, located approximately 20km Southwest of Kambalda.
Spargoville 5A Definitive Feasibility Study progress
- Bulk Sample performing as expected through Glencore’s Murrin Murrin HPAL Plan
- Both open pit and underground decline options have now been evaluated
- Excellent hanging-wall stability observed in the trial slot within fresh-rock zone
- Detailed engineering and geotechnical studies commencing
- Underground decline from the 5A Pit selected as the preferred mining method
- Underground extraction offers less dilution of the high-grade to assist optimum product blending
- Scheduling and capital/operating expenditure to complete DFS is near completion
- Underground drill position to be established to test depth extensions of the 5A channel
- Drill drive may be repurposed as a potential access drive to the 5D Andrews Mine
“With the successful delivery of the metallurgical sample to Glencore, Estrella has passed a very significant milestone on the way to getting the Spargoville Nickel Project into production,” Managing Director, Chris Daws, commented.
“Our greater understanding of the 5A hanging wall environment below the open pit has given us confidence to pursue the remaining high-grade nickel via the establishment of an underground exploration decline.
“The reduced timeframe and smaller surface footprint will be beneficial both to the bottom line and to the environment.
“The strength of the nickel price and strong outlook is a big positive for the 5A’s future development and I look forward to providing more details as we progress work.”
For further information please visit: https://www.estrellaresources.com.au/
