THE BOURSE WHISPERER: Rex Minerals (ASX: Rex) has announced the results of a recently completed Pre-feasibility Study conducted on the company’s 100 per cent-owned Hillside project in South Australia.
Rex said the PFS results have confirmed the potential for the project to hold a production profile 70,000 tonnes per annum copper for a period of 15 years or greater.
Given the current status of available copper Resources in Australia, Rex claimed this now defines Hillside to be the largest undeveloped copper project in Australia.
“This new Hillside study reaffirms the economics of a robust and significant copper project, possibly the best open pit project in Australia since Ernest Henry 25 years ago,” Rex Minerals managing director Mark Parry said in the company’s announcement to the Australian Securities Exchange.
Location diagram showing Rex’s exploration licence on the Yorke
Peninsula and the of the Hillside project. Source: Company announcement
“Hillside is blessed with location advantages of port, power, water and near surface ore, which are the drivers of low capital and operating costs.
“In an environment where project capital spends are increasing worldwide, Hillside’s capital intensity is over 30 per cent less than a recent world average estimate of US$15,000 per tonne of annual copper equivalent production.
“In Australia and globally, as copper mines are going deeper and underground, new open pit mines are far and few between.”
Rex said it expects being able to release the first Reserve statement for Hillside, which it considers to be another important step towards proving up Hillside as one of Australia’s largest copper projects.
“The depth of Hillside is yet to be fully tested but provides great promise for the mine’s second decade of life,” Parry said.
“Hillside has many great attributes and we will advance permitting and finance options over the next year in preparation for construction in 2014.”