logo-loader

Elysium Resources' results from Burraga slag dump trump PFS expectations

Published: 15:30 15 May 2014 AEST

au_nsw_350_537426524e906

Elysium Resources (ASX: EYM) has revealed further high grade sample results from its slag dumps as it moves towards production at its flagship Burraga Copper project in the Burraga region west of Sydney.

Some of highlighted features from the recent testing included:

- Copper results from the north slag dump range from 0.68 – 4.93% Cu; average 2.22% Cu;
- Copper results from the south slag dump range from 0.48 – 1.67% Cu; average 0.93% Cu;
- Copper average grade for the north dump is more than twice that used in 2011 PFS; and
- Zinc results for both dumps average is 0.61% Zn; no zinc was used in 2011 PFS economics.

With the EIS (Environmental Impact Statement) underway, preliminary mine planning is being undertaken concurrent with the upgrading of the JORC resources directly affecting the anticipated production.

No JORC compliant resources have been estimated on the two slag dumps where systematic sampling has been carried out and the assay results have been received. A total of 95 samples were taken over the north and south dumps on a nominal 10 x 10m grid.

From the 52 samples taken over the north dump, assay results averaged 2.2% Cu, considerably higher than the 2011 metallurgy result and the grade used in the financial model prepared for the 2011 pre-feasibility study (PFS).

The metallurgy sample taken in 2011 resulted in a head grade of 0.9% Cu, 6.0 g/t Ag and 0.14 g/t Au. Along with the copper, mean zinc, lead, gold and silver results are also significantly higher than those from the metallurgy 2011 sample.

From the 43 samples taken over the southern slag dump, the copper, gold and silver results were in line with the 2011 metallurgical sample result. Results for zinc are significantly better and economically relevant, although not used in the 2011 financial model.


Analysis

The most significant take away from this recent update is the higher-than-expected sample grades that were well in excess of those used in the Company’s modelling which underpinned the 2011 PFS.

This potentially adds favourably to the project’s economics and could bolster the Company’s ability to attract funding for the project, particularly in light of the current competitive market for investment funding.

With the EIS process underway potential investors should also be comforted by the project’s location in NSW where its commercial viability is not discounted to the extent as many other projects being pursued in higher sovereign risk jurisdictions.

Elysium is expected to embark on a 1,500 metre reverse drilling program over August and September which will contribute to completing a JORC standard resource towards the end of 2014.

Concurrently to this upcoming drill program, the Company will continuing working towards the anticipated completion of its EIS, expected within 6-12 months, and the securing of its necessary mining licences and permits over the coming 12-18 months.

The achievements of these milestones are sure to be key re-rating events for the Company’s share price.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

9 hours, 8 minutes ago