THE BOURSE WHISPERER: Alcyone Resources (ASX:AYN) has reported a 30 per cent increase in the Ore Reserve estimate for the Twin Hills deposit at the company’s Texas silver and polymetallic project in southeast Queensland.
The company also announced positive results of a Scoping Study conducted on the nearby Mt Gunyan deposit.
Alcoyne said the combined reserve/scoping study announcement had given it confidence that it has eight years of ore feed available for the Texas Operations between the two deposits, based on an annualised production run rate of 1.2 million ounces.
The updated proven and Probable Ore Reserve estimate for the Twin Hills deposit, which is the current source of ore feed for the mining operation, comprises 5.5 million tonnes grading 57 grams per tonne silver for 6.6 million ounces of recoverable silver above a cut-off of 26.5g/t silver.
This represents a 30 per cent increase in recoverable ounces over a previous Ore Reserve estimate depleted to end of July 2012 mining surface.
Alcoyne calculated the revised Ore Reserve using a silver price of A$30 per ounce, and is based on the current Twin Hills Mineral Resource, depleted for mining to end of July 2012, of 9.3 million tonnes at 53g/t silver for 16 million ounces.
The company said the revised Ore Reserve underpins a mine life of approximately six years from the Twin Hills deposit alone.
Acloyne has also completed an initial Scoping Study on the recently announced Resource of 3.9 million tonnes grading 55g/t silver for 7.0 million ounces of contained silver at the Mt Gunyan deposit, which is located four kilometres east of the Twin Hills mine.
The results from the study indicate Mt Gunyan has potential to deliver 2.4 million tonnes at 56g/t silver containing 2.6 million ounces of recoverable silver (4.4Moz contained).
Alcyone said it has identified several advanced exploration prospects within the 1,100 square kilometre tenement portfolio at Texas, which it considers to have potential to further enhance its resource inventory in the future.
“These are great outcomes for the Texas project, with the Twin Hills Ore Reserve upgrade effectively underpinning a six year mine life at a production rate of 1.2 million ounces per annum, and the Mt Gunyan Scoping Study providing a clear pathway to extend the life of the operation well beyond this,” Alcyone Resources managing director Andrew King said in the company’s announcement to the Australian Securities Exchange.
“It is anticipated that the Mount Gunyan Mineral Resource should be converted to an Ore Reserve as part of the ongoing Feasibility Study.
“Based on our understanding of mineralisation in the Texas region, we expect that, on completion the Mount Gunyan Feasibility study will identify an additional 2-3 million recoverable ounces of silver to that identified at Twin Hills.
“This would mean that the Twin Hills and Mount Gunyan deposits could together deliver around six to eight years of production.
“With ongoing success at key exploration targets such as Silver Spur, this puts our goal of a ten year mine life well within reach.”