YTC Resources (ASX: YTC) is focussed on the development and exploration of the high grade Hera-Nymagee Project in the Cobar district of NSW.
The company has completed the Definitive Feasibility Study (DFS) on the Hera gold and base metal deposit as Stage 1 of the development of the Hera-Nymagee Project. Stage 2 of the Feasibility study will look at the integration of the larger Nymagee copper deposit, located 4.5km to the north of Hera.
YTC Resources (ASX: YTC) has uncovered a new target at its Nymagee Copper Deposit in the mineral-rich Cobar Basin through a down hole electromagnetic survey.
Importantly, this discovery highlights the potential for Nymagee North to become a new Cobar-type deposit at depth.
Rimas Kairaitis, chief executive officer, commented on the results:
“The Downhole EM has substantially refined the drilling targets at Nymagee North and the results are consistent with our interpretation that Nymagee North has the potential to evolve into a new Cobar type deposit at depth.
“These results provide a strong indication of the potential to continue to expand the resource at Nymagee through ongoing systematic exploration.”
YTC has received assays from a further three diamond drill holes completed at Nymagee North, about 500 metres north of the Nymagee Deposit.
Notable intersections from two of the holes include 2 metres at 2.7% lead and 4.8% zinc from 287 metres and 5 metres at 1% lead and 1.9% zinc from 351 metres.
These holes were designed to follow up a previously reported intersection of 14 metres at 63 grams per tonne (g/t) silver, 0.2% copper, 2.7% lead and 5.2% zinc.
Another hole, drilled at the northern end of the Nymagee deposit, tested an electromagnetic conductor about 100 metres down dip from an earlier intersection of 8 metres at 2% copper from 301 metres, and 10 metres at 2% copper from 357 metres.
This hole intersected a broad interval of lower grade footwall mineralisation recording 37 metres at 0.5% copper from 384 metres.
Down hole electromagnetic surveying of this hole confirmed a strong off-hole anomaly above and to the south of the intersection.
The discovery of a new untested electromagnetic conductor located to the north of all existing drilling combined with the latest drill assays from Nymagee North is consistent with the upper, lead-zinc rich zone of a new Cobar-style mineral system.
YTC is currently completing an extensive down hole electromagnetic survey to the north, south and beneath the Hera deposit, as well as at a number of additional prospects including Hebe, Zeus and Dominion.
The company expects to re-commence drilling activities at Nymagee and Hera in June.
Nymagee’s world class potential
Nymagee is fast evolving into a world class deposit with distinct similarities to the CSA Mine operated by Glencore International (LSE: GLEN).
The CSA mine is located 90 kilometres north and along strike of Nymagee. By way of scale, it produces over 1.1 million tonnes of copper ore and produces in excess of 185,000 tonnes of copper concentrate per annum.
The concentrate contains around 29% copper metal and is exported to smelters in India, China and South East Asia.
Scoping level feasibility studies have begun with a view to integrating the Nymagee deposit as a Stage 2 development to the Stage 1 development of the nearby Hera gold deposit.
The Stage 1 development of the Hera-Nymagee Project is expected to be a relatively low-cost, high grade mining operation on the Hera deposit, producing around 50,000 ounces of gold equivalent per annum over a minimum life of 7 years. The Hera Definitive Feasibility Study indicates a C1 operating cost of A$395 per ounce (after lead-zinc credits).
Feasibility work to date includes initial metallurgical studies showing the Nymagee copper mineralisation capable of producing high quality copper concentrates at high recoveries.
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