THE BOURSE WHISPERER: Rex Minerals (ASX: RMX) has completed the sixth Mineral Resource upgrade in three years at the company’s Hillside copper project on the Yorke Peninsula, South Australia.
The company said the latest upgrade has reconfirmed Hillside as Australia’s largest open pit copper project.
Rex said the first 12 years of production at Hillside are now covered with Ore Reserves providing further confidence in the detailed mine plan and further support for the completion of project finance negotiations.
The recent upgrade has resulted in a 50 per cent increase in the Ore Reserve to 180 million tonnes at 0.52 per cent copper, 0.13 grams per tonne gold and 14.4 per cent iron (180 million tonnes at 0.8 per cent copper equivalent (CuEq)).
Rex has also completed a Mineral Resource update with a maiden Measured Mineral Resource of 2Mt of contained copper, approximately 64 per cent of which has been classified as Measured and Indicated Resources, and 72 per cent of this has been converted to Proven and Probable Ore Reserves.
“Rex started Resource drilling at Hillside in 2010 and in just 3 years, has delivered one of the best long-life open pit copper discoveries in Australia since Ernest Henry,” Rex Minerals managing director Mark Parry said in the company’s announcement to the Australian Securities Exchange.
“A Resource of this scale and a Reserve of this quality so close to existing infrastructure provides significant financial flexibility as we look to finalise project funding in the months ahead.
“We are continuing discussions with copper concentrate, iron ore buyers and potential joint venture partners which can provide significant financial support to Hillside.
“With relatively low capital intensity, low operating costs, and the simplicity of open pit mining in a first world location, we are confident Hillside has all the right attributes for successful financing and development.”