Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

MacPhersons Resources Boosts Ore Reserves And Nimbus Mine Life

MacPhersons Resources (ASX:MRP) has now delivered a 60% increase in underground ore reserves at the company's Nimbus silver-zinc-gold project, extending the underground production schedule by eight months to 5.5 years.

The latest good news comes after the company 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.

The ore reserve is now: 0.74 million tonnes at 270g/t silver equivalent (Ag-Eq*) for 6.43 million ounces Ag-Eq.

The overall ore reserve is now 12.37 million ounces Ag-Eq* (8.3Moz silver, 44,000t zinc, 4,800oz gold).

Additional blocks of 0.86 million tonnes 260g/t Ag-Eq* have been excluded from the ore reserve, because of ongoing geotechnical study and in-fill drilling with a view to being included in the next ore reserve update.

This could be just the tip of the iceberg for Nimbus, considering that all zones remain open at depth.

Extensional drilling in progress, with a resource/reserve update expected in the December quarter 2014.

Morrie Goodz, managing director, said the increase in underground ore reserves, together with the significant extensions identified in recent drilling but not yet captured in resources or reserves, highlighted the substantial growth potential of the Nimbus Project.

"We have demonstrated our ability to continue to grow our ore reserves at Nimbus and we are confident that this represents just the first step in our strategy to extend the mine life well beyond the current 5.5 years."

Mining re-start

Earlier this week MacPhersons received the last remaining approval for a mining re-start of Nimbus from the WA Department of Minerals and Petroleum.

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 (NYSE:BFS) and project funding.

Resource growth potential

All of the new drilling completed so far this year has shown that all the mineralisation at Nimbus remains open at depth and along strike.

None of these extensions have yet been included in any resource or reserve estimates, but will be included in the resource/reserve update scheduled later this year.

Nimbus therefore has the potential for a much longer mine life.

Analysis

Today's ore increase and mine life boost at Nimbus caps off a busy news period for MacPhersons, and follows the approval from the WA Department of Minerals and Petroleum for a mining re-start.

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

Ongoing programs of geotechnical, in-fill and extensional drilling are also fully-funded.

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

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.