YTC Resources has increased its share in the Nymagee joint venture to 95% after reaching an agreement with a subsidiary of Chinese group Minmetals Resources. Nymagee is part of the Hera-Nymagee project within the Cobar Basin in central New South Wales.
YTC bought an 80% interest in the project from CBH Resources in 2009 as part of the Hera project purchase. It has since earned a 90% stake through sole funding of exploration.
Progress at the project by YTC has been swift, with a maiden resource of 8.1 million tonnes @ 1.2% copper, 0.3% lead, 0.7% zinc and 9 grams/tonne silver recently reported just 14 months after the deposit’s discovery. This resource is a major expansion to the total Hera-Nymagee project resource to more than 670,000 ounces of gold equivalent at Hera and 125,000 tonnes of copper equivalent.
Significant zones of additional copper mineralization to the east of the main deposits have not been included in the resource estimate. YTC is continuing exploration and drilling and expects to update estimates during the next 12 months.
High grade copper mineralization was first discovered by YTC at Nymagee in October 2010. The joint venture includes exploration and mining licences covering both the historic Nymagee copper mine and the tenement of the Hera-Nymagee corridor.
YTC says Nymagee is evolving into a world-class deposit, showing similarities to the CSA mine 90km to the north. The operation, which is managed by Glencore International, annually produces more than 1.1 million tonnes of copper ore and 185,000 tonnes of copper concentrate @ 29% copper metal. This is exported to smelters in India, China and South East Asia.
The company hopes to integrate Nymagee as a two stage development with the first stage of at the Hera gold deposit. The gold-base metal Hera project is south of the Nymagee copper mine which last operated in 1918 and has a recorded historical production of 422,000 tonnes @ 5.8% copper.
Feasibility work to date includes initial metallurgical studies confirming the Nymagee copper mineralization capable of producing high quality copper concentrates at high recoveries.