An updated resource for Golden Cross Resources’ Copper Hill project in Central New South Wales shows an increase of 24 million tonnes from the October 2010 estimate. The new resource is 197 million tonnes at grades of 0.31% copper and 0.26 grams/tonne gold.
The estimate was prepared by Hellman & Schofield director Dr Phillip Hellman using a 0.2% copper cut-off. The measured, indicated and inferred resource inside the reporting pit is 163 million tonnes @ 0.32% copper and 0.27 grams/tonne gold for 527,000 tonnes of copper and 1.4 million ounces of gold. The resource outside the reporting pit is 34 million tonnes @ 0.27% copper and 0.19 grams/tonne gold for 91,400 tonnes of copper and 200,000 ounces of gold.
At a cut-off grade of 0.5% copper there are 11 million tonnes inside the reporting pit @ 0.67% copper and 0.61 grams/tonne gold for 76,900 tonnes of contained copper and 200,000 ounces of gold while there are 200,000 tonnes outside the pit @ 0.55% copper and 0.41 grams/tonne gold for 1300 tonnes of copper and less than 100,000 ounces of gold. These figures indicate the potential for a start-up pit.
The optimized pit was generated using Whittle software to maximize undiscounted cash flow using US$5.30 per pound of copper and US$2120 per ounce of gold commodity prices and recoveries of 85% for copper and 80% for gold with 45 degree overall pit slopes.
A total of 85,236 metres of drill holes were available for the resource estimate and comprised 61,729 metres of reverse circulation percussion drilling and 23,507 metres of diamond core drilling.