TURKEY CREEK - FIRST RESERVE ESTIMATE
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· Turkey Creek Ore Reserve of 11.3Mt at 0.46% copper for 52,100t of contained copper
· The Turkey Creek deposit is located immediately adjacent to the proposed processing facility
· Cloncurry Copper Project Ore Reserve of 86Mt at 0.50% copper and 0.07g/t gold for 427,000t contained copper and 205,000oz contained gold
· Reserve increase extends mine life to 13 years
· Reserve increase will improve project returns
· Turkey Creek will be included in project optimisation on commencement of the SRIG JV
· Capital and operating costs expected to have improved since 2012 DFS and 2014 update
Altona Mining Limited (“Altona” or the “Company” - https://www.commodity-tv.net/c/mid,3159,Companies_und_Projects/?v=286622 ) is pleased to announce the first Ore Reserve estimate for the Turkey Creek deposit at the Company’s Cloncurry Copper Project near Mt Isa in Queensland.
The Cloncurry Project is the subject of an A$330 million proposed joint venture (“JV”) with Sichuan Railway Investment Group (“SRIG”) (refer to ASX release of 2 June 2016 for further information on the SRIG JV).
The planned Little Eva mining project sits within the Cloncurry Project. Turkey Creek is located 1.5 kilometres east of the planned Little Eva open pit mine and within 650 metres of a planned 7Mtpa processing plant within granted Mining Leases (Figures 1 and 3).
The Reserve estimate is:
11.3 million tonnes at 0.46% copper for 52,100 tonnes of contained copper.
This Ore Reserve Estimate has been made based upon the integration into the mine plan for the Little Eva mine development outlined in the Definitive Feasibility Study Update disclosed to ASX on 13 March 2014. The Turkey Creek pit will be 1.15 kilometre long and 175 metres deep (Figure 2) delivering sulphide ore to the planned nearby Little Eva processing plant. Mine schedules currently envisage the mining of Turkey Creek late in the project life.
The reserve is based on resources reported at a 0.3% lower cut-off grade and is classified as a probable resource (refer to ASX release of 18 March 2015). A detailed summary of the supporting data and methodology is given in Table 3 (Table 1 of the JORC Code 2012).
The reserve is comprised entirely of sulphide ore from 25 metres to 160 metres below surface. An oxide cap ranging from surface to depths of 25 to 45 metres has not been included in the estimate as it failed to give acceptable recoveries in flotation testwork (sulphidisation).
The global ore reserve for the Cloncurry Project is now:
86 million tonnes at 0.50% copper, 0.07g/t gold for 427,000 tonnes of contained copper and 205,000 ounces contained gold.
A full break down of the Reserve estimate is provided in Table 1. The Ore Reserve estimate is included within the Turkey Creek resource estimate (Tables 2 and 3).
A re-design of the infrastructure layout for the Project was completed to accommodate an open pit mine at Turkey Creek (Figure 3). An amendment to the Environmental Authority has also been sought to incorporate the changes to the operational plan.
The current mine life is 11 years and given the plant design capacity of 7Mtpa Turkey Creek will add approximately two years to mine life. The additional mine life and deferral of treatment of low grade stockpiles will improve Project returns from those reported in the Definitive Feasibility Study Update.
The financial close of the proposed Joint Venture transaction with SRIG is targeted for October 31, 2016. It is intended an optimisation of the Project will be undertaken upon the commencement of the JV to incorporate Turkey Creek into the mine plan and re-visit the cost and other inputs into the 2012 DFS and its 2014 update. It is expected that capital and operating costs will have materially improved.
Please direct enquiries to:
Alistair Cowden David Tasker Jochen Staiger
Managing Director Professional Public Relations Swiss Resource Capital AG
Altona Mining Limited Perth Tel: +41 71 354 8501
Tel: +61 8 9485 2929 Tel: +61 8 9388 0944 [email protected]
Altona Mining Limited is an ASX listed company focussed on the Cloncurry Project in Queensland, Australia. The Project has Mineral Resources containing some 1.65 million tonnes of copper and 0.41 million ounces of gold. The first development envisaged is the 7 million tonnes per annum Little Eva open pit copper-gold mine and concentrator. Altona has completed a Framework Agreement with Sichuan Railway Investment Group to fully fund and develop Little Eva. Little Eva is permitted with proposed annual production(1) of 38,800 tonnes of copper and 17,200 ounces of gold for a minimum of 11 years. A Definitive Feasibility Study was published in March 2014.
1Refer to the ASX release ‘Cost Review Delivers Major Upgrade to Little Eva’ dated 13 March 2014 which outlines information in relation to this production target and forecast financial information derived from this production target. The release is available to be viewed at www.altonamining.com or www.asx.com.au. The Company confirms that all the material assumptions underpinning the production target and the forecast financial information derived from the production target referred to in the above-mentioned release continue to apply and have not materially changed.
Competent Persons Statement
The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Roland Bartsch, B Sc (Hons) MAusIMM, MAIG and Dr Alistair Cowden, BSc (Hons), PhD, MAusIMM, MAIG. Mr Bartsch and Dr Cowden are full time employees of the Company and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Bartsch and Dr Cowden consent to the inclusion in the report of the matters based on his information in the form and context in which it appears.
When used, copper equivalent refers to copper in concentrate produced, or planned to be produced. It does not refer to metal contained within insitu resources, reserves or drill results. The copper equivalent grade is calculated by factoring the copper grade by revenue from all metals (NSR) being copper, gold and silver.