The share price of Mineral Resources Limited [ASX:MIN] has increased by 5.17% at time of writing, trading at $16.06 in today’s market.
The Australian based company specialises in commodities production and mining services, contracting and processing.
Mineral Resources feasibility budget looks feasible
MRL’s joint venture with Hexagon Resources, the McIntosh flake graphite project, has had its initial feasibility study budget approved. That means they can now start their comprehensive drilling programme.
The programme aims to test the resource potential of new targets, confirm and upgrade existing targets and resources, as well as generate approximately 17 tonnes of core samples for metallurgical test work.
This will be underway by the end of August and should be completed by October 2019. A decision to mine can be made, as stated in the Heads of Agreement signed by both companies on 27 March this year.
The joint venture enables MRI to earn a 51% share of the McIntosh project, by managing and effectively funding all of the development costs of the project to commercial production.
Future Prospects for Mineral Resources
MRI are concerned with:
- Upgrading the existing Mineral Resource base, which currently stands at 21.3 million tonnes grading 4.5%
- Advancing negotiations with Malarngowen Native Title group to gain heritage clearance for new targets and possible operational areas, as well as granting current mining lease applications
- Enhance and optimise the process flow sheet for McIntosh project through Metallurgical test work, to safeguard and maintain maximum preservation of Flake size and graphite recoveries
But most importantly, they will be steamrolling ahead to develop the McIntosh brand, with plans for marking of graphite concentrates to be produced at McIntosh.
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