Pilbara DFS produces positive results for Venturex Resources
THE BOURSE WHISPERER: Venturex Resources (ASX: VXR) has received results from a Definitive Feasibility Study (DFS) of the company’s 100 per cent-owned Pilbara copper-zinc project in the Pilbara region of Western Australia.
Project location. Source: Company announcement
The DFS results have confirmed the potential for a robust Project with an average payable metal production profile of 16,500 tonnes per annum copper, 30,000 tonnes per annum zinc and 200,000 ounces per annum of silver for at least 8.5 years.
Venturex claimed the result has defined the Pilbara project as one of the largest emerging base and precious metals projects in Australia.
The project has a reported total Mineral Resource inventory of 26.37 million tonnes grading 1.2 per cent copper, 3.4 per cent zinc, 0.3 per cent lead and 18.9 grams per tonne silver.
The current DFS Ore Reserve estimate for the Project has significantly increased to:
– 8.37 million tonnes at 1.8 per cent copper, 4.0 per cent zinc, 0.3 per cent lead and 21.5g/t silver.
“The DFS has confirmed the robust economics of a significant new copper-zinc operation centred in the mining heartland of the Pilbara region,” Venturex Resources managing director Michael Mulroney said in the company’s announcement to the Australian Securities Exchange.
“The Pilbara copper-zinc project is globally competitive against other forecast new sources of copper-zinc production with excellent cash costs and attractive capital intensity in an area with abundant mining and transport infrastructure.”
Venturex said the DFS result had supported its decision to locate the project at Sulphur Springs with approximately 85 per cent of the DFS Ore Reserve being drawn from the Sulphur Springs deposit.
The DFS provides for all operations to be totally focussed at the Sulphur Springs deposit for the first 6.5 years of the project transitioning to a blended ore supply from the Whim Creek area in the later stages.
The DFS incorporates only three of the six known mineral resources currently controlled by the company in the Pilbara region.
Venturex identified the proximity of the recently acquired Kangaroo Caves resource as an ideal brownfields exploration target and potential future ore supply for the processing hub at Sulphur Springs.
Preliminary modelling indicates the additional resources could produce a potential project life in excess of 11 years at the currently planned throughput rate.
“The growth in the Sulphur Springs Ore Reserve is an excellent result and there remains considerable additional value upside to be unlocked,” Mulroney said.
“The evaluation of Venturex’s other Resources, particularly at the recently acquired Kangaroo Caves area, will provide long term potential to further enhance the value of the Pilbara copper-zinc project and extend the mine life of the project.
“We will be advancing permitting and financing options over the next six months.”
Venturex indicated it has commenced work on project approvals and the financing strategy for the Pilbara copper-zinc project.
The company anticipates the required WA Government approval documentation will be completed and submitted in late February 2013, with Government project approvals expected in mid-late 2013.