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MacPhersons Resources gains final permit for Nimbus mining re-start

Published: 04:25 04 Aug 2014 EDT

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MacPhersons Resources' (ASX:MRP) shares are expected to firm after it received the last remaining approval for a mining re-start at the Nimbus silver-zinc-gold project near Kalgoorlie in Western Australia.

Just last week MacPhersons raised $8 million through a placement which will fully fund the BFS, which is on target to be completed in the December quarter 2014.

Nimbus remains on track for production and cash flow in CY15.

MacPhersons has now received the final permitting from the WA Department of Minerals and Petroleum to recommence the Nimbus mining and processing operations.

The approved mining proposal includes the company’s plans to construct a larger 480,000tpa treatment facility at Nimbus – a four-fold increase over the original plant.

Construction of plant and mining operations will be scheduled after completion of the Bankable Feasibility Study (BFS) and project funding

Morrie Goodz, managing director of MacPhersons, said this permit was a key approval requirement of the BFS to allow the project to move forward.

“We have demonstrated a well-planned and detailed process to recommence the Nimbus operations and we are pleased that the permitting process now allows us to proceed on schedule with our BFS.”

The defined high-grade ore reserve at Nimbus is: 1.1 million tonnes at 297g/t Ag Eq* recoverable grade.

The Nimbus Project was operated between 2003 and 2007, processing 319,000 tonnes at an average head grade of 352g/t silver to produce 3.6 million ounces.


Permit details


This key permit allows for the commencement of construction of an expanded processing facility which will be some 400% larger than the original Nimbus treatment plant to accommodate the larger resource base defined by MacPhersons.

The permit also encompasses construction of a tailings storage facility and Integrated Waste Landform (IWL), and the commencement of open pit mining.

MacPhersons said that it will now prepare all supporting documentation for the Nimbus Project in parallel with completion of the BFS.


Analysis

MacPhersons has marked another key step towards production and cash flow at Nimbus after receiving the final permitting from the WA Department of Minerals and Petroleum.

The company also last week raised $8 million, and the fact that Orion Mine Finance increased its stake to 19.9% while MacPhersons chairman subscribed for $1 million worth of shares provides a major vote of confidence in the company's assets and operations.

Orion Mine Finance which has $1.4 billion under management.

Next key catalysts will come from the extensive drilling campaigns which are underway in preparation for a significant reserve-resource update.

MacPhersons shares are expected to trade higher today.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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