TriAusMin (ASX: TRO) is focussed on generating positive cash flow from its inventory of Mineral Resources as well as achieving exploration success in the prospective Lachlan Fold Belt of New South Wales, Australia.
TriAusMin to commence highly anticipated drilling at high grade Woodlawn polymetallic project
The Woodlawn Project has significant exploration potential, a fact potentially missed. The Woodland Underground project is evaluating the underground resource for potential redevelopment of the high-grade mineralisation and testing down plunge extensions of the mined lenses.
TriAusMin (ASX: TRO, TSX: TOR) is nearing the start of a new drill campaign at its Woodlawn high grade polymetallic deposit in New South Wales.
The Woodlawn Project is centred on the former Woodlawn Mine located 30 kilometres south of Goulburn and 200 kilometres south-west of Sydney.
It holds a 530 square kilometre land position in the highly mineralised Lachlan Fold Belt of New South Wales.
The company holds two significant poly-metallic resource-based assets; the Woodlawn Underground Project (WUP) and the Woodlawn Tailings Retreatment Project (WRP).
A work contract has been executed to undertake a series of diamond drill holes targeting the plunge extensions.
The WUP involves evaluating the underground resource for potential redevelopment of the high-grade mineralisation that remained when the underground mining operations ceased in 1998.
In addition it will probe the potential for defining new resources on the down plunge extensions of the mined lenses.
Drill pads have been completed and it is expected that drilling will begin within the coming week following mobilisation of the drill rig and crews to the Woodlawn site.
Previously, mining at Woodlawn sourced production from a number of lenses and the two largest contributors, lenses B and C, will be the focus of the drilling program.
This next stage of exploration follows an intensive period of data analysis and re-interpretation of the structural setting and the characteristics of the mineralisation to identify clear target zones along the interpreted plunge direction of the lenses.
This will provide down dip intercepts with a distance of up to 200 to 300 metres beyond the limit of previous mining activity.
Proximity to other deposits
The project is located in proximity to other known polymetallic deposits in the region with expansion potential – like the 130,000 tonne at 2% copper, 2.6% lead, 4.2% zinc, 95g/t silver and 1.8g/t gold Cowley Hill Mine.
Woodlawn previously processed 13.8 million tonnes at 9.1% zinc, 3.6% lead, 1.6% copper, 74 grams per tonne (g/t) silver and 0.52g/t gold.
This was produced from a number of separate, fault-bounded massive sulphide zones mined to a maximum depth of 630 metres below surface.
TriAusMin is also targeting the definition of new resources on the down plunge extensions of the mined lenses.
The company has previously released a Measured and Indicated Resource of 8.6 million tonnes at 10.3% zinc, 4% lead, 1.8% copper, 84g/t silver and 0.5g/t gold, which exists in the vicinity of the former workings.
This is further supported by an Inferred Resource of 1.5 million tonnes at 9.6% zinc, 4.1% lead, 1.7% copper, 87g/t silver and 0.6g/t gold.
Meanwhile, the Woodlawn Tailings Retreatment Project comprises a Reserve of 11.2 million tonnes at 2.2% zinc, 1.3% lead, 0.5% copper, 31g/t silver and 0.3g/t gold, based around the tailings from the previous operation that still contain significant levels of base and precious metals.
Technical studies have demonstrated the production of copper, lead and zinc concentrates with gold and silver by-products through the application of finer grinding.
Development opportunity
Importantly, the project evaluation is at an advanced stage with the final engineering and updated cost estimation studies, that will provide support to a near-term development decision, nearing completion.
The significance of the Woodlawn Tailings Retreatment Project is that it is a development and production project.
The project is expected to produce around 1.5 million tonnes per annum over a mine life of 7.5 years.
Another plus for Woodlawn is it located in a region with established infrastructure and access to water and electricity.
A development decision for the Woodlawn Tailings Retreatment Project is expected in the current March quarter with production scheduled to begin at the end of 2013 or the start of 2014.
Cash-backed
TriAusMin is definitely well-funded to continue its advance towards production at Woodlawn with A$3.7 million in the bank at the end of the December quarter.
During the quarter the company raised A$3.3 million (C$3.6 million) through the issue of 42.1 million shares at A$0.078 each (C$0.085) via a non-brokered private placement.
