Austral Resources (ASX:AR1) released the results of a positive scoping study conducted by independent consultant ERM Australia on Friday (October 4).
The study focused on several of the company’s key deposits, namely Lady Annie, Lady Brenda, Mount Clarke and Flying Horse.
The study found that Austral could mine approximately 128,000 tonnes of contained copper from these deposits using two methods. The majority, about 112,000 tonnes, would be processed via flotation.
Additionally, the total includes about 15,600 tonnes of contained copper oxide, as well as transitional ore, that can be mined and processed on-site at Austral’s Mt Kelly solvent extraction-electrowinning (SX/EW) processing facility.
“The optimisation work confirms we have a business that can continue to be significant and has the scale to reposition Austral as a leading Australian mid-tier copper producer with economic relevance, especially as we continue to move into a greener world,” Chairman David Newling said.
Approximately 90 percent of the mineral resources included in the scoping study are within the measured or indicated JORC resource classification. Pre-feasibility studies of the deposits are being fast-tracked by Austral and are expected in the fourth quarter of this year.
Austral is currently in talks with Glencore (LSE:GLEN,OTC Pink:GLCNF) for a toll treatment agreement, which is anticipated to be finalised before the end of 2024. The companies plan to process the transitional and fresh sulphide ore from Austral’s deposits at Glencore’s Mt Isa facility.
Austral Resources is just over a year into a period of voluntary trading suspension as it restructures its finances and completes a recapitalisation. The company currently produces copper at its Anthill and Mt Kelly mines, and has a significant stockpile of copper cathode.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
