AuKing Mining Ltd (ASX:AKN) has taken the next step towards developing the Sandiego deposit of the flagship Koongie Park Copper-Zinc Project in the Halls Creek region of north-eastern Western Australia with a scoping study underway.
The study will assess the development of an open-pit and underground mining operation at the Sandiego deposit and will incorporate the potential contribution of sulphide ores from the nearby Emull deposit.
In addition, AuKing has signed an MoU with Cazaly Resources to include their Mt Angelo North and Bommie deposits that are near Sandiego in the study as extra mining feedstock options.
“Mining study footing”
AuKing chief executive officer Paul Williams said the scoping study would draw on historical study reports and data but also the detailed additional work that the company has undertaken over the past year or so.
“We are pleased to establish Sandiego on a mining study footing and hope that strong findings from the scoping study will then enable us to take more formal steps to developing a copper-zinc mine just outside of the Halls Creek township,” he said.
Forming ‘base case’ scenario
Wave International has been engaged to assist with the preparation of the study which will consider all proposed aspects of a proposed mine development and is expected to be completed by the end of March 2023.
This study will form a 'base case' scenario that involves a combined open pit and underground mining operation at Sandiego and will include the following:
- Preliminary mine planning;
- Project design;
- Preliminary processing flowsheets;
- Concept layouts;
- Mechanical equipment requirements;
- Capex/opex estimates; and
- High-level economic assessment.
Consideration will also be given to nearby deposits with similar mineralogy that are likely to process via flotation techniques, including:
- Additional resources (at depth) at Sandiego;
- Emull deposit;
- Mt Angelo North (CAZ asset); and
- Bommie (CAZ asset).
Head start
The company already has a head start on the study with a substantial body of available study and technical data for Sandiego, based on pre-feasibility work undertaken by Astral Resources (then Anglo Australian Resources) several years ago.
This material will be referred to for the scoping study wherever possible.
At this stage, AuKing’s Onedin deposit will continue to operate under a separate metallurgical test-work program and will not be included in the study.
In the event of a successful process being established for the near-surface Onedin oxide and transition ores, this is likely to be different to the planned flotation circuit at Sandiego.
MoU with neighbour Cazaly
The MoU with Cazaly is for the purpose of recording an agreed collaboration for the development of their respective mining deposits in the Halls Creek region utilising a common processing facility centred on the Sandiego deposit.
“We are also delighted to be working closely with our project neighbour at Sandiego – Cazaly Resources – which owns projects that have the potential to significantly enhance the project economics and overall viability of an operation at Sandiego,” Williams said.
Locations of Cazaly Resources’ tenures, nearby Sandiego.
Cazaly holds two deposits no more than 10 kilometres from Sandiego with Mt Angelo North hosting 1.72 million tonnes at 1.4% copper, 1.4% zinc and 12.3 g/t silver, and Bommie holding 95 million tonnes at 0.27% copper.
There are strong indications that these deposits could have metallurgical characteristics that are consistent with Sandiego, making them complementary to a proposed flotation processing flowsheet at Sandiego.
AuKing and Cazaly have agreed to make available all relevant technical data to support the scoping study under the MoU, which contemplates a more formal commercial arrangement between the companies pending positive study outcomes.