The Asia Miner

JAN-FEB 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 38 of 103

Volume 14 • Issue 1 | 2017 | ASIA Miner | 37 Australian Copper AERIS Resources is constructing a new ventilation shaft at the Trit- ton Copper Project in western New South Wales. The shaft will support operations as they progress deeper, following the ore body and will enable the Tritton Deeps project to be developed, prolong- ing mine life. When completed, the shaft will extend from surface to the existing RL4385m exploration drive, a total of 880 metres, representing a total capital investment of more than $11 million. The shaft is target- ed to be operational at the end of the March quarter. Aeris says the project is progressing well despite some technical issues. Power outages have disrupted progress and a back-up die- sel power pack was mobilised to site. The pilot hole encountered an open fault at 800 metres depth that stopped drilling progress due to loss of water returns. Breakthrough of the pilot hole to the mine was expected in October. Copper production at Tritton for the September quarter was 6380 tonnes, lower than the previous quarter's 7098 tonnes. During the quarter, the underground mine transitioned to multi-lift stopes. Min- ing production and grade were negatively impacted by oversize rocks in stopes, which slowed down extraction of broken ore and impacted dilution. The North East mine closed with last ore was extracted in Sep- tember. The Murrawombie underground mine development contin- ues with production expected to ramp-up during FY2017. During the September quarter electrical power, main ventilation and pump- ing infrastructure were installed and operating. Stope mining of the minor lodes in the upper part of the mine had commenced to pro- vide ore production while the decline has advanced down to the main ore body. Production from the minor lodes in the upper part of the mine is expected to be variable due to the partially oxidised rock mass near surface. Priority is given to advance of the capital access decline to allow future bottom up mining of these lodes. The company's cop- per production guidance for FY2017 is 28,000 tonnes. Aeris is ramping-up greenfields exploration on its tenement pack- age and plans to spend $7.5 million over the next two years. A high power electromagnetic geophysical survey over the Tritton and Kur- rajong corridors began in the December quarter and is expected to continue through to June 2017. Extensive electromagnetic surveys completed within the tenement package in the mid-1990s led to discovery of the Tritton deposit. STRONG copper mineralisation has been intersected between two previous high-grade copper intersections at the Rockface prospect on KGL Resources' Jervois Copper-Silver-Gold Project in the Northern Territory. One hole encountered a broad zone that includes more than 24 metres of strong copper mineralisation from 435.6 metres. This hole was targeting Down Hole Electromagnetic (DHEM) con- ductors 2, 3 and 4 in a 105 metre zone that separates the two previous holes. These holes returned 16 metres @ 3.34% copper and 10.5 metres @ 8.76% copper. Assay results from the latest hole are expected to confirm visual inspection of the diamond core. The hole has confirmed the conti- nuity of the large Conductor 3 anomaly that has a vertical extent of approximately 350 metres. It intersected 54.9 metres of mineralisation associated with the conductors. From 411 to 435.6 metres, there is a broad zone of weak stringer mineralisation with disseminated pyrite and chalcopy- rite in a moderately to strongly altered garnet-magnetite alteration assemblage. From 435.6 metres, massive and semi-massive chal- copyrite-pyrite has been observed in an intensely altered magnetite host rock. The footwall of the mineralised zone is characterised by a very narrow (20cm) garnet alteration zone. The hole also intersected a zone of weak mineralisation from 382.6 to 396.2 metres characterised by intense garnet banding with minor disseminated and occasional veined pyrite and chalcopyrite. DHEM surveying has proven successful in locating high-grade copper at Rockface where grades have generally increased as drill- ing goes deeper. KGL chairman Denis Wood said, "The latest result has increased the board's confidence in using DHEM surveying to identify drill targets. Again, there has been a strong correlation between the conductors from DHEM surveying and the actual drill intersections. This cost-effective technology is proving important in our strategy of increasing and upgrading the total resource at Jervois to world- class, low-cost status." He said with high-grade copper mineralisation in the magne- tite-chalcopyrite zone responding well to DHEM, a planned survey would assist in targeting additional drilling into the highest grade mineralisation. "The survey should further refine the size and loca- tion of the conductors intersected in and adjacent to this hole." KGL recently received a further R & D Tax Incentive refund of $2.1 million, bringing total recent refunds to $3 million. The government program reimburses part of eligible research and development ex- penditure. KGL observes strong copper at Rockface Ore is transported to the processing facilities at Aeris Resources' Tritton Copper Project. Aeris heads deep at Tritton mine

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