The Einasleigh Project - AusIMM · The Einasleigh Project. Today’s Presentation LOCATION &...
Transcript of The Einasleigh Project - AusIMM · The Einasleigh Project. Today’s Presentation LOCATION &...
AusIMMMelbourne Branch
6 March 2008Tom Eadie FAusIMM
MOVING TOWARDS PRODUCTION
The
Einasleigh Project
Today’s Presentation
LOCATION & PERSPECTIVE
THE DEPOSITS
EXPLORATION POTENTIAL
THE CHALLENGES
CURRENT PROGRESS TO FEASIBILITY
SUMMARY
March 08
Location of Einasleigh
N
0 200km
Mt Garnet
Balcooma
GreenvaleKidston
Chillagoe
Charters Towers
Maitland
Thalanga
Einasleigh
Cairns
Townsville
0 50 100
GeorgetownBlock
(incl Einasleigh)
0 50 100
Curnamona Craton(incl Broken Hill)
Mt Isa Inlier
Relative Sizes of Broken Hill - type Terranes
0 50 100
Relative Sizes of Broken Hill - type Terranes
0 50 100
Broken Hill Block Einasleigh Metamorphics Eastern Succession of The Mount Isa Block
Einasleigh
Broken Hill
Ernest Henry
Eloise
Cannington
Dugald River
Osborne
Selwyn
THE DEPOSITS
EINASLEIGH – MOVING TO PRODUCTION
Chloe
Jackson
Railway Flat
Einasleigh Copper Mine
Kaiser Bill
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Einasleigh JORC Resources
March 08
Prospect Resource
Chloe Inferred: 1.8Mt @ 5.1% Zn, 2.2% Pb, 42g/t Ag and 0.3% Cu
Jackson Inferred: 0.5Mt @ 5.3% Zn, 4.1% Pb, 115g/t Ag and 0.1% Cu
Railway Flat
Inferred: 0.8Mt @ 4.3% Zn, 1.4% Pb, 23g/t Ag and 0.2% Cu
Einasleigh Indicated: 0.5Mt @ 4.0% Cu, 0.22g/t Au and 18g/t AgInferred: 0.6Mt @ 1.9% Cu, 0.1g/t Au and 8g/t Ag
Kaiser Bill Indicated: 10.9Mt @ 0.81% Cu, 0.13g/t Au and 6g/t AgInferred: 1.9Mt @ 0.85% Cu, 0.14g/t Au and 5g/t Ag
Copper Strike (incl Walford Creek)Increase in Resource Inventory
119
194 194
0 0
260
496
00
100
200
300
400
500
600
2004 2005 2006 2007
Tonn
es o
f Met
al (o
oo)
Copper
Zn / Pb
March 08
Chloe 3D Model
March 08
Intersection23.6 m @ 7.9% Zn,
3.2% Pb, & 0.4% Cu
Inferred Resource1.8Mt @ 7.6%
Zn/Pb/Cu
Surface
400metres
200metres
Chloe Alteration
0 10m
Assemblages
4
3
2
1
Po-cal-spGar-px-amp-sp
Mag-gar-spQtz-ep
Simplified zoned alteration pattern
Inferred Resource 0.5Mt @9.5%
Zn/Pb/Cu
Possible outline of additional
mineralisation
Surface
200metres
100metres
Jackson 3D Model
Details of this area in next slide
Einasleigh Copper Mine
100mbelow surface
East Limb485,000t 4.0% Cu
(Indicated)
Old Einasleigh CopperMine Workings
& Shaft
Surface
200mbelow surface N
West Limb340,000t 1.7% Cu
(Inferred)
Einasleigh Copper Mine
Two styles of mineralisation:•Massive py-po-cp-chlorite (east limb, high grade)•“Skarn” gar-amp-px-mag-bar-py-po-cp (west limb, lower grade)
Host is psammitic metasedimentMineralisation ages younger than host (Evins et al)
Prospects
Bloodwood – 5m @ 9.3% Zn/Pb/Cu & 43g/t Ag
Teasdale – 45m @ 0.9% Cu & Au, Ag
Advanced ProspectNew Prospect
JORC Resource
Dreadnought – 5m @ 5.6% Zn/Pb/Cu & 19g/t Ag
Young – 17m @ 4.4% Zn/Pb/Cu & 31g/t Ag
Area 2
Area 1
Dreadnought to Teasdale Trend (Area 1)
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N
0 1000m
Younger Volcanics
Chloe
Jackson
Dreadnought
Young
Teasdale?
?
Wipe out yv
?
THE CHALLENGES
URGENCY
RESOURCE DEFINITION vs EXPLORATION
MINING / SCHEDULING
METALLURGY
INFRASTRUCTURE
SOFTER ISSUES
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Urgency
Take advantage of today’s prices
Start small and grow bigger
Focus on drilling for resource definition
Get the project off the ground
Patience
Get the scale right
Focus on exploration
Full Bankable Feasibility Study
Big Co. ApproachSmall Co. Approach
vs
Mining / Scheduling
vs
Five different deposits –
o Copper
o Medium grade
o Close to mill
o Open pit
o Flexibility of mill
o Metallurgy
o Capital costs
Hard to rank
o Zinc / Lead
o High grade
o 15 km trucking
o Underground
o Customer demands
o Ease of mining / transport
o Operating costs
Metallurgy
Einasleigh Copper Mine – easy and excellent
Kaiser Bill – pre-concentration possibilities?
Zinc / Lead – coarse liberation of metals though pyrrhotite issues need some attention
Flexibility of millo Copper and(?) zinc / lead
o High grade Einasleigh along with Kaiser Bill feed
o Totally separate circuits?
o Synergies of a bigger operation
Financing and Infrastructure
Financingo Conventional bank finance following feasibility
study?o Large shot of equity issued up front?o Variations?o How much is needed?Transport corridor to TownsvillePowero Diesel generation?o Hook up to national grid?Water
Softer Issues
Environment – management going well
Native Title – signed mining ILUA with Ewamian people
Local people very supportive
Good regional government and state government support
Conceptual Plan – Two Separate Mills
Mill #2Mill #1• 2010 – 0.5 Mta from
Chloe & Kaiser Bill• 2012 – 0.5 Mta from
Chloe & Jackson• 2012 – 0.5 Mta* from
Kaiser Bill & Einasleigh
Metal Production* 20-25 ktpa Zn (from 2012) 8-12 ktpa Pb
8-10 ktpa Cu
*assuming pre-concentration of KB ore after 2012
Upcoming Milestones
Einasleigh Feasibility Study – mid-2008
Confirm financing and go-ahead decision – Sept.
Expand resources at Einasleigh and prove up new targets - ongoing
Confirm high grade section at Kamarga - June
Drill new targets at Mt Lyell – April
March 08