Aeris Resources Ltd (ASX:AIS, OTC:ARSRF) recorded another good quarter at its Australian operations with copper equivalent production of 10,200 tonnes for the quarter, including 6,000 tonnes of copper, 15,200 ounces of gold and 43,900 ounces of silver.
While September quarter copper equivalent production was on par with the previous quarter, the AISC improved to A$5.32 per pound, down from $5.45.
Despite lower overall copper production in the three months to 6,000 tonnes from 6,700, an increase in gold and silver production from 14,200 and 42,600 ounces respectively saw copper equivalent production remain stable.
Production summary
The company’s flagship Tritton Copper Operations in central NSW performed well during the September quarter with production ahead of plan at 5,000 tonnes of copper at an AISC of $5.06/pound.
Gold production at the Cracow Project in central Queensland was well ahead of plan at 12,900 ounces of gold while at Mt Colin in the North Queensland Operations copper and gold mining was in line with plan but high oxidised mill feed impacted recovery and production.
Aeris recorded no lost time injuries during the quarter, bringing the 12-month rolling LTIFR to 1.41.
There was one Reportable Environmental Incident recorded in the quarter related to poor water quality, potentially from mine-affected water, in a diversion drain at Mt Colin. Drainage controls around the mine embankment have been upgraded to prevent a reoccurrence.
Cash and receivables increased from $33.4 million to $39.1 million and the closing unrestricted cash balance at September 30 was $25.5 million.
Tritton Operations
Mining operations at Tritton performed well for the quarter with total mined tonnes slightly lower than plan but this was compensated by higher grades resulting in produced copper ahead of plan.
Activities focused on the Avoca Tank mine where mined grades were better than expected and production from this mine was prioritised ahead of mining from Budgerygar and Murrawombie.
Mined tonnes are forecast to increase in the second half of the financial year as the paste fill line to Budgerygar is completed in January, allowing increased production from the mine, and as the Murrawombie pit cutback starts delivering ore to the mill.
The processing plant performed well, with metallurgical recovery ahead of plan and all-in-sustaining costs were well contained, decreasing quarter on quarter to $5.06/pound.
Drilling continues
On the exploration front drilling continued at Constellation deposit with 28 diamond drill holes completed during the quarter and this program will carry on through the current quarter.
Most drill holes (21) were associated with the resource definition drill program targeting the shallow dipping 'main zone' which defines most of the known deposit.
The remaining seven holes targeted the interpreted sub-vertical mineralised zone along the northern margin of the deposit, referred to as the ‘stand-up zone’.
High-grade copper intersections within the stand-up zone include:
- 28.2 metres at 7.50% copper, 0.88 g/t gold and 4.43 g/t silver from 86 metres; and
- 9.0 metres at 3.24% copper, 1.10 g/t gold and 6.36 g/t silver from 146.5 metres.
High-grade intersections within the main zone include:
- 2.1 metres at 3.91% copper, 2.42 g/t gold and 22.12 g/t silver from 236.4 metres;
- 9.2 metres at 3.76% copper, 0.82 g/t gold and 6.32 g/t silver from 145.6 metres; and
- 9.1 metres at 4.81% copper, 1.31 g/t gold and 15.6 g/t silver from 176.5 metres.
Gold at Cracow
Increased gold production for the quarter of 12,900 ounces at Cracow was due to the availability of higher-grade stopes while lower AISC of $2,352/ounce was driven by lower mining costs and higher gold production.
Mined tonnes and grade were both higher quarter-on-quarter and compared to plan with high-grade stopes at Coronation contributing to the improved results.
The processing plant also performed well with recovery slightly above plan. Mill feed from underground ore was supplemented with low-grade stockpiles.
Gross mining costs were lower than plan due to good cost management and reduced ground support requirements for the stopes scheduled.
Exploration drilling continued underground in the Western Vein Field with five holes intersecting the priority Apollo structure and the company is awaiting assay results.
A drilling program targeting the Coronation West and Kilkenny West structures has started, aiming to identify high-grade gold zones similar to the nearby Sterling deposit.
North Queensland Operations
Mining performance was in line with plan as final stopes are extracted and costs were well maintained within plan.
Mined grade improved quarter-on-quarter as more higher-grade pillars were extracted but processing underperformed due to increased levels of oxidised material impacting recovery.
Stockpiles of 175,000 tonnes of ore at the Ernest Henry mill will be available for processing in the current quarter.
Mining rates at Mt Colin are declining as the final stopes are taken and mining is now expected to be completed in late November.
The minor amendment to the environmental authority required to commence mining at Barbara was granted by the regulator.
A feasibility study on the underground mining project is nearly complete, at which point the project will be presented to the board for final investment decision.
Stockman Project
At Stockman in Victoria following the successful completion of the 'proof of concept' metallurgical test work on the modified flotation plant at the mine site and downstream Albion processing plant, preparations started for the next phase which will include detailed metallurgical test work and preliminary engineering.
A groundwater environmental quality objective methodology report was submitted to the Environmental Protection Authority (EPA) with feedback received and Stockman’s response submitted. Water quality monitoring is ongoing for the project.
Stockman continues to support the local area with community grants provided to several regional groups and planned capital improvement works for the Benambra school have been completed.
Jaguar Operations
The Jaguar Operations in Western Australia remain on care and maintenance and a number of restart scenarios have been assessed, incorporating resources from the various deposits and exploration targets.
A preferred option will be presented to the Aeris board for approval this quarter.
Diamond drilling at the Heather Bore prospect, which is regarded as a high-priority gold target, intersected gold mineralisation and will be used to develop an updated geology model to inform further exploration.
A notable high-grade interval was intersected in one hole, reporting 0.79 metres at 1.99 g/t gold within a broader interval of 3.0 metres at 0.65 g/t.
Ongoing work is focused on using the geological data from both drill holes to develop a more detailed stratigraphic and structural model across the prospect, providing a foundation for refining target areas for future exploration.