The managing director of MacPhersons Resources says the historical Nimbus silver mine, just 10km from Kalgoorlie's super pit, should be back in production by the first half of next year.
Speaking after the company announced a 46 per cent resource increase at the mine - to 18.3 million ounces - managing director Morrie Goodz said the mine could conceivably have 25moz to 50moz.
It contains 11.7moz of silver.
Mr Goodz said the company would have a more conclusive understanding of its resource, and a mine plan, following a feasibility study to be completed in the next four to six months.
"But we're ticking all the boxes at the moment," Mr Goodz said.
In a deal led by well-known MacPhersons chairman Ashok Parekh, the Kalgoorlie-based company bought the mine off Reed Resources for $4.5 million in cash and scrip in 2011.MacPhersons shares jumped 4.5Â¢ to 38.5Â¢ on the news yesterday.
The new magazine for a new generation of West Australians.Click here to download »
All the latest market figures from Australia and the world.Click here »
'The West Australian' is a trademark of West Australian Newspapers Limited 2013.
All rights reserved.
Select your state to see news for your area.