Estrella Resources Limited (ASX: ESR) has entered into an ore processing and off-take agreement with Murrin Murrin Operations Pty Ltd a wholly owned subsidiary of Glencore plc for the 5A nickel mine bulk metallurgical sample.
The agreement now positions the company to move forward with the bulk metallurgical extraction of 2,000 to 4,000 tonnes of high-grade nickel sulphide ore from the 5A nickel mine located approximately 20km west-south-west of Kambalda, WA.
The commercial terms for the sale of the bulk metallurgical sample are confidential, though the company expects it will see a positive financial return from the extraction of the sample at current high nickel prices.
Field activities have already commenced with the mobilisation of Estrella staff and contractors to the 5A nickel mine, bulk sample laydown areas have been prepared, pit access and rehabilitation of open pit ramp completed, first of the heavy equipment has arrived on-site to commence the extraction of the sample which is only expected to take a short duration. From there it will be crushed and screened to size at the bulk sample laydown area before being loaded and trucked to Murrin Murrin for processing.
A positive process outcome for the bulk metallurgical sample via the Murrin Murrin HPAL route will provide the company with a strong basis to fully develop the 5A nickel mine ore resource via simple pit cut back mining methods and further develop remaining nickel resources at Andrews, 5B and 1A nickel deposits.
