ASX-listed Mincor Resources NL will begin in-fill drilling at fiveprospects at its gold projectin Western Australia.

Thedecision follows a study of open-pit optimization at the site that showed theprospects have potential for viable gold mining operations at A$1,200 perounce, the company said July 14.

The company said reverse circulation drilling will startlater this month, after final regulatory approvals are received. Half of themineral resources at the prospects are in the inferred category.

These need to be converted to reserves ahead of theproject's feasibility study, the company said, adding that the combined cost ofthe drill program and the study is approximately A$700,000.

The drilling program will also target areas adjacent to thepit that could serve as future extensions. Mincor is also planning a smallnumber of diamond drill holes to gather samples.

The company is aiming to construct open-pit gold mines at Widgiemooltha andprocess the ore at nearby facilities under tolling agreements.

Apart from its gold developments, Mincor also controls anumber of nickel mines, which it placed on care and maintenance at the start of the year,when prices for the industrial metal sank to 13-year lows.

CEO Peter Muccilli suggested that he could restart the minesif nickel prices improve.

"Weare continuing to watch the nickel price closely, and while it remains well belowthe trigger price we require to restart our nickel mines, it is clearly movingin the right direction," he was quoted as saying in the statement.

Mincorclosed its Mariners and Miitel nickel mines in January.