Copper is now being investigated as an additional revenue source with the proposed mine at Cerro del Gallo. Now we wait for Sedgman to finish the BFS.
1. QUARTERLY HIGHLIGHTS Mexico Cerro del Gallo ~100,000oz pa AuEq gold/silver advanced development project ? Pre Definitive Feasibility Study (DFS) physical site assessment works completed ? Awaiting final design work and costing’s prior to release of DFS ? Project optimisation through use of SART and HPGR processes to be incorporated in DFS ? First quarter 2012 DFS release target, subject to timely delivery of key inputs by 3rd parties Namiquipa silver/lead/zinc exploration project ? Good grade, wide interval intercepts plus intervals of high grade material demonstrated during the quarter, notably including 16m @ 921g/t AgEq (NAM-009) ? 60 holes (22,633m) of core drilling completed Espiritu Santo Jalisco gold/silver exploration project ? Planning, access and site set-up commenced ? Rock chip sampling program initiated ? Drilling expected to commence second quarter 2012 Australia Mt Philp Ironstone exploration project ? Drilling completed on 4km strike length ironstone range ? First quarter 2012 release of resource estimate expected Cerro del Gallo
Work on the definitive feasibility study (DFS) by Sedgman Metals for heap leaching at Cerro del Gallo advanced over the quarter with the completion of the site investigation work, high pressure grinding roll (HPGR) trials and subsequent unit sizing, commencement of additional metallurgical test work and completion of larger scale agglomeration and permeability test work for the HPGR material. The additional metallurgical test work is for the inclusion of a circuit to remove copper from the heap leach solution prior the recovery of the gold by activated carbon whilst regenerating cyanide for reuse in the heap leach. The test work to date has shown that a high grade copper precipitate (>50 per cent copper), containing over 95 per cent of the leached silver, can be produced for sale.
In addition, the cyanide consumed by the copper in the heap leach can be recovered and reused. This is known as the S.A.R.T. process (sulphidisation – acidification –recycle – thickening). Further larger scale testing of the S.A.R.T. process has been completed with analytical results and data analysis following for final design of the plant and to allow determination of the costs and economic benefits for inclusion in the DFS. The addition of the S.A.R.T. circuit will increase the capital requirements by several million dollars but it is expected this will be recovered early in the operations due to the operating cost savings associated with the cyanide regeneration.
CJO Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
