The Asia Miner

OCT-DEC 2018

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

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the asia miner • volume 15 • issue 4 13 REGIONAL FOCUS: China Proponents of a new AUD$480 million copper mine on South Australia's Yorke Peninsula are evaluaঞng financing opঞons in regard to project funding and o\ake agreements from a number of interests, including Chinese. Rex Minerals Project Director, Mr Greg Hall, said a feasibility study currently underway by a Chinese engineering firm was due for compleঞon in a number of months. Rex is also updaঞng its internal feasibility study. Any strong support to back the project from these quarters could see the iniঞal 13-year Stage 1 of Rex's proposed Hillside copper mine, located 12 kilometres south of the coastal township of Ardrossan, in producঞon iniঞally as an open-pit operaঞon. Mr Hall said the Chinese backed feasibility study was looking to see what further savings could be made to the mine's start-up capital costs and what debt packages were feasible. Rex is also exploring other joint venture and investment opঞons to get Hillside off the ground. Regarded as Australia's largest undeveloped open-pit copper mineral resource, Rex's previous extended feasibility study (EFS) delivered All in Cash Costs of US$1.88/lb for its reserve of some 500,000 tonnes of copper metal, which is a subset of the resource of 2 million tonnes of copper and 1.4 million ounces of gold. The mine, for which a mining lease has already been approved, is forecast to deliver an average head grade of 0.62% Cu and 0.16g/t Au, with an annual output of 35,000 tonnes of copper concentrate and 24,000oz pa of gold. A possible Stage 2 will be evaluated in the future, and could cover producঞon from years 13 to 26. The main ore body has been drilled out to approximately 600 metres depth to deliver the current Mineral Resource and Ore Reserve and more than 4160 million has been spent at the site to date. The iniঞal capital cost of AUD$480 million covers development of both the open pit mine and the construcঞon of an on-site processing plant. Mr Hall said the Company anঞcipated further improvements from the currently ongoing feasibility study updates. Once a final investment decision had been made, it would take six months firstly re-rouঞng the main roads around the required mine site boundaries, followed by an 18-month mine construcঞon schedule. "On this basis, the earliest we could see a likely producঞon start at Hillside would be by late in 2021 if final approvals, financing and Board approval were achieved during 2019," Mr Hall said. The Hillside Project occupies an area of approximately 2km 2 within a large Exploraঞon Licence area of over 1,700km2. The bulk of this area is highly prospecঞve for copper mineralisaঞon. Many of these targets are based on geophysical features such as a magneঞc survey, which played an important role in the discovery of the Hillside Project. Image courtesy ©Rex Minerals. Hi-res aerial magnec data over Eastern Yorke Peninsula tenure with key copper targets idenfied by Rex overlain Chinese eyeing funding options over AUD$480m copper mine

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