Lady Colleen Study Exceeds Austral Resource’s Expectations

THE CONFERENCE CALLER: Austral Resources’ (ASX: AR1) Lady Colleen copper project in Queensland is economically viable, according to a scoping study result announced today ahead of the miner’s presentation to the 2023 RIU Explorers Conference. By Ngaire McDiarmid

The study indicated total production of about 44,000 tonnes of copper and a pre-tax internal rate of return of about 38 per cent over five years.

It put the pre-tax net present value (7.5 per cent discount) at A$60 million – ranging from $15 million to $94 million with a median estimated value of $55 million.

In the company’s ASX announcement, managing director and CEO Dan Jauncey said the initial study had exceeded expectations and demonstrated the project’s potential.

He said a mine at Lady Colleen would boost revenue and further cement Austral’s position as both a copper producer and an explorer with a highly prospective project book.

The company recently reported a record revenue month, as production from its Anthill copper mine in Queensland ramped up to 1,003 toones in January, driving sales revenue to $12.6 million.

Exploration manager Ben Coutts told RIU Explorers delegates Anthill’s cathode production enabled Austral’s self-funded exploration program.

“The company had an inventory of 140 mineral assets and had a clear focus on “closing the development gap”, he said.

One of the first projects the company wanted to advance from pre-development was Lady Colleen, Coutts said.