Perilya updates Moolooloo Resource
THE DRILL SERGEANT: Base metals mining and exploration company Perilya has announced a new mineral resource estimate for the North Moolooloo high grade zinc prospect.
The new resource estimate is located in the Northern region of the North Moolooloo exploration project in the Flinders region in South Australia.
Perilya discovered the North Moolooloo deposit during a 94 hole drill program undertaken between late 2009 to April 2011.
The drilling totalled 13,068 metres, including 48 diamond drill holes and 46 reverse circulation (RC) drill holes.
The new Indicated Mineral Resource estimate, at a 10% zinc cut-off grade, totals 214,000 tonnes at 34.4 per cent zinc for a contained 73,530 tonnes of zinc metal.
“This is an exciting discovery as the deposit represents one of the highest grade deposits discovered in area to date and extends from near surface to a depth of approximately 150 metres,” Perilya managing director Paul Arndt said in an announcement.
“North Moolooloo is the second significant zinc silicate discovery by the company in the Flinders Ranges – the first being the Reliance discovery in 2001 – and follows the company’s highly successful open pit Beltana development, also in the Flinders region.
“The exciting thing with North Moolooloo is that preliminary work indicates that the ground conditions are very similar to the Beltana project giving us a higher degree of confidence around the potential for an economic open pit mining operation.
“It is also important to note that with the support of the company’s 52% shareholder, Zhongjin Lingnan, Perilya was able to gain vastly improved terms for the sale of its zinc silicate DSO from the Beltana Project into the Chinese market and the company is confident that with Zhongjin Lingnan’s support we will be able to maintain that competitive advantage into the Chinese market.
“In light of these results, the company will carry out a scoping study into the potential mining of this resource, whilst continuing to explore and seek to identify further resources in the Flinders region.”
Perilya has commissioned a development study for the purpose of enabling it to make a development decision on the North Moolooloo prospect.
The principal aim of the development study will be to consider the economic feasibility of an open pit mining operation.
The study will include:
– Evaluation of open pit mine design options;
– Where appropriate metallurgical test work;
– Assessment of bulk direct shipment ore transport and logistics options;
– Identification of preferred site layout and facility locations;
– Assessment and recommendation of transport and water supply arrangements;
– Advancement of environmental baseline monitoring in support of an environmental impact statement (EIS), and
– Discussions with local stakeholders.
The North Moolooloo prospect lies on exploration licence, which is held under a joint venture arrangement between Perilya and Australian Coloured Oxides.
Perilya currently has a 70% interest in the joint venture and has the right to increase its interest to 85% subject to completion of a successful feasibility study.