Ferret's Stock to Watch: MINCOR RESOURCES NL08:39, Thursday, 6...

Ferret's Stock to Watch: MINCOR RESOURCES NL
08:39, Thursday, 6 July 2006

A COMPANY TRACKING WMC'S SUCCESS IN KAMBALDA NICKEL REGION

Sydney - Thursday - July 6: (RWE Aust Business News)
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OVERVIEW
********

It's a re-run of the 1960s when Western Mining created the
Kambalda nickel mine and made the company a fortune.

Unfortunately the first mine finished up under the town and had
to be moved, like a strange quirk of nature at a lake called Lefroy which
moved significantly every time the wind blew in the wrong direction.

Since 2000, Mincor Resources NL (ASX:MCR) has been a serious
miner and explorer for nickel in the very region where WMC achieved
success in becoming one of the world's biggest nickel producers.

Yesterday Mincor reported more success in intersecting massive
sulphides at Carnilya Hill.

It announced drilling had achieved a "highly significant"
intersection of 4.7 metres of high-grade massive sulphides within an
overall 11-metre intersection of ore-grade nickel mineralisation, only
200 metres down-plunge of existing underground development at the old
Carnilya Hill nickel mine.

The results follow Mincor's results from Carnilya Hill,
announced on June 19, of near ore-grade intersections in drillholes
CMD002 and CMD002W1, some 270 metres down-plunge of the existing mine.

Mincor's latest drillhole, CMD005, was targeted on a geophysical
anomaly detected in down-hole electromagnetic surveys conducted on drill
holes CMD002 and CMD002W1.

This anomaly suggested a target up-dip (that is, back towards
the existing underground development).

CDM005 achieved a multiple intersection made up of two zones:
10.71 metres at 6.95pc nickel (496.24m to 506.95m) including 4.67m at
11.83pc nickel (496.52m to 501.19m) and a further intersection 2.71m at
2.01pc nickel (518.63-521.34m).

The results are considered highly significant in that they
demonstrate the presence of high-grade, high-tenor massive sulphide
mineralisation typical of what was previously successfully mined at
Carnilya Hill, directors say.

Mincor is earning an interest of 70 per cent in the Carnilya
Hill tenements from View Resources Ltd through the expenditure of $2.5
million over three years.

SHARE PRICE MOVEMENTS
*********************

Mincor shares yesterday sold 5c higher at $1.09. Rolling high for
the year has been $1.145 and low 61.5c. Dividend is 4c a share to yield
3.67 per cent. Earnings per share is 10.30c with a p/e ratio of 10.58.
The company has 194.6 million shares on issue with a market cap of $204.4
million.

Mincor ended the 2005/06 financial year on a strong note, with
record production in June lifting the company's nickel production above
its target of 13,000 tonnes of nickel-in-concentrate for the financial
year.

Mincor said that production from its four Kambalda nickel
operations for the month of June was a record for the company, coming in
at 62,500 tonnes @ 2.9pc nickel for an estimated 1,500 tonnes of
nickel-in-concentrate.

Total production for the June quarter is estimated at 3,700
tonnes of nickel-in-concentrate, or over 4,200 tonnes of nickel metal in
ore.

Full-year production is likely to reach 13,400 tonnes of
nickel-in-concentrate.

With current nickel prices near all-time highs, Mincor is well
placed to benefit from this strong performance, and from continued strong
production through the 2006/07 financial year.

Nickel production for 06/07 is budgeted at between 12,500 and
13,500 tonnes of nickel metal in concentrate.

"Mincor is in excellent shape, with continuing strong nickel
production, a very healthy balance sheet, no debt, and a well-funded and
very active nickel exploration program," said the company's managing
director, David Moore.

Mr Moore said the company's success in new mine developments over
the past two years was paying off, with all four of its Kambalda nickel
mines performing exceptionally well.

"We are very pleased to have exceeded our targeted nickel
production for the year," he said.

"This is a great tribute to our hardworking and committed staff
and to the performance of Barminco, the mining contractor at three of our
mines."

Mr Moore said Mincor's forward production profile would continue
to underpin its status as a leading mid-tier Australian nickel producer,
with the strong cash flows generated by its Kambalda operations providing
the platform for its next phase of growth.

"Our focus is now firmly on our new growth and expansion
strategy," Mr Moore added.

"We are determined to substantially grow our successful Kambalda
nickel business through exploration and to expand across the wider
minerals industry.

"With the strong cash flows from our mines we can actively
pursue these exploration opportunities and continue to reward our
shareholders with generous dividends."

Near the end of June, Mincor reported encouraging results from
the first exploration program carried out under its recently announced
growth and expansion strategy.

The company reported that initial field work at its 100 per
cent-owned Gascoyne Tungsten project in Western Australia had confirmed
the presence of high grade tungsten mineralisation in outcropping skarn
units.

Mincor said the assay results, including spectacular values up to
6.66pc WO3 over three metres, provided strong confirmation of the tenor
of scheelite mineralisation encountered by previous explorers in the late
1970's.

Mincor confined its first field campaign to an initial assessment
of the Nardoo Well prospect.

BACKGROUND
**********

Mincor Resources NL was listed in July 1997 under the name of
Africwest Gold NL.

The company is now a well-established and profitable nickel
producer on the ASX list.

Mincor is debt free and has paid regular fully franked dividends
since 2003.

Mincor's core assets are its mines and tenement holdings in the
Kambalda nickel district where it has been in production since 2001.

It operates four mines in the region and is active in nickel,
gold and base metals exploration throughout Australia.

Mincor's growth strategy is aimed at the creation of a
diversified mining house through a strong focus on growth the company's
successful nickel business while simultaneously expanding its interests
across a wider range of mineral commodities.

With its strong cash flows, profitable production, dividend
payments and outstanding growth potential, Mincor represents a quality
investment in the well-proven Australian resources sector.

Mincor owns and operates the Miitel, Mariners, Redross and
Wannaway nickel mines.

All four mines are underground nickel sulphide operations in the
Kambalda nickel district of WA.

Production from Miitel is underway at around 240,000 tonners ore
per annum at an average grade of 2.7 per cent nickel.

Production at Redross began in August 2004 and is currently
proceeding at production rate about 10,000 tonnes per month at an average
grade of 2.2 per cent nickel.

Mariners began production in early 2005 and is currently
producing at a rate of around 10-15,000 tonnes @ 2.2 per cent.

Ore from Mincor's nickel mines is toll-treated at BHP Billiton's
(Nickel West) Kambaldas Nickel Operations plant.

The resulting concentrate is sold to BHP Billiton via a long term
off-take agreement.

ENDS