THE BOURSE WHISPERER: Alcyone Resources has increased the Mineral Resource estimate for the company’s Twin Hills deposit.
The Twin Hills deposit is the current source of ore feed for Alcoyne’s heap leach silver mining operation at the Texas silver and polymetallic project in southeast Queensland.
The updated Mineral Resource, using a revised cut-off grade of 26.5 grams per tonne silver and reported against end of February 2012 mined surface, comprises 9.5 million tonnes grading 53.8 grams per tonne silver for 16.4 million ounces of contained silver.
Alcoyne said this represents a 69 per cent increase in contained silver over the previous Mineral Resource estimate of 3.684Mt grading 82g/t silver for 9.7 million ounces reported to the same surface.
The company will now review its reserves and mine plan with a likely increase in both reserves and mine life based on a forecast production rate of 1.2 to 1.5 million ounces per annum.
The revised Mineral Resource, using a cut-off grade of 26.5g/t Ag
and reduced for material mined to end of February 2012. Source: Company
“The decision to revise the Mineral Resource model was driven by a combination of the good orebody reconciliations achieved from current mining activities, the continuing strength of the silver price and the hedging the company has in place.” Alcyone Resources managing director Andrew King said in the company’s announcement to the Australian Securities Exchange.
“Actual day to day ore mining is already structured around prevailing silver prices and economics, this new Mineral Resource model will enable an ore reserve to be established that will more closely reflect those daily mining activities.”