Golden Cross Resources has revised its resource estimate at the Copper Hill optimized pit near Molong in central New South Wales, Australia.
The new estimate is bounded by a pit design based on elevated copper and gold metal prices and confirms 35 million tonnes @ 0.41% copper and 0.41 grams/tonne gold within 153 million tonnes @ 0.32% copper and 0.27 grams/tonne gold. Additional mineralization estimated outside the pit has not been included in the resource as it does not have reasonable prospects of eventual economic extraction.
This total resource is the same grade but lower in tonnes that the estimate of June 2011, which included the outside mineralization. Golden Cross says the revised estimate resulted from additional drilling and different modeling techniques. The company will use the new resource estimate to form the basis for current pit design planning at its flagship project where 85% of some 493,000 tonnes of copper and 1.33 million ounces of gold fall within an optimum pit shell.
Copper Hill was one of the two first mines operating in Australia in 1847 when the Molong Mining Company officially commenced operations. Since then, its history has been spasmodic with several changes of ownership and subsequent activity.
Golden Cross says it is a typical low-grade porphyry copper-gold deposit extractable by open-pit mining. It is the company’s most advanced project and efforts to maximize the returns and achieve a 2 million tonne per annum mining and milling strategy is being studied.
A bankable feasibility study is being prepared to offer to Chinese financiers by June 2012. A new team of senior geologists, metallurgists and engineers was employed in 2011 in the hope of bringing the Copper Hill mine to production by 2015.