User:Mchughcb/sandbox

Permitting
The Program for Environment Protection and Rehabilitation was approved by the South Australia Department of Mining and Energy on the 23rd of July 2020 for the Extractive Mineral Lease 6439, Mineral Lease 6438 and Miscellaneous Purpose Licence 146.

Regional Geology
The Hillside Mineral Resource was discovered in late 2008 by Rex Minerals Ltd (Rex). It is an iron-oxide-copper-gold orebody (IOCG) and it occurs on the Yorke Peninsula, just south of the town of Ardrossan and close to the historic mines of Moonta and Wallaroo. The Hillside Mineral Resource is located within the Moonta Subdomain of the Olympic Cu-Au Province of the eastern Gawler Craton of South Australia, which is host to the Olympic Dam, Prominent Hill, Carrapateena, and Moonta-Wallaroo deposits

Local Geology
Copper-gold mineralisation is hosted by a sequence of steeply west-dipping, intensely altered structures. Mineralisation which predominantly strikes north-south has so far been observed over the area of 2.3km north-south length and a 900m west-east width. At least four main structures with individual copper-mineralised strike lengths of +2.0km have been defined to date. Copper mineralisation within all structures remains open along strike and at depth, from as shallow as 5m below surface to 710m below surface with true widths estimated to be in the order of 1m to 130m. A zone of shallow mineralisation with an apparent east-west strike rather than north-south (corresponding with a magnetic response) was identified on the southeast extension of the orebody.

Mineralisation
Primary copper zones comprise parallel, steeply-dipping structures of massive sulphide dominated by chalcopyrite with subordinate bornite and chalcocite.

Gold tends to occur as inclusions within chalcopyrite. Uranium and magnetite are associated with sulphides. Uranium is present at low levels within the orebody, and recoveries to the concentrate are within saleable limits.

Mining
The proposed mining method is open pit mining with large hydraulic backhoe excavators (500-800 tonne) and ultra class (292 tonne) trucks and smaller excavators (250 tonne) for narrower sections of ore. During steady state production the total material movement is approximately 60 million tonnes of rock per year supplying at least 6 million tonne of copper gold ore to the processing plant. The stage 1 open pit is to be mined in 5 phases over 12 years moving a total of 685 million tonnes of rock including 82 million tonnes of ore to the processing plant.

Processing
Insert Process flow sheet diagram

Rehabilitation
Insert rehab picture from PEPR?

Key Outcomes from the Hillside Feasibility Study Costing Update
The Hillside Feasibility Study costing update used the Hillside Mineral Resource (May 2015) and the work previously completed by Rex and achieved the following outcomes:


 * A C1 cash cost of US$1.38/lb copper and AISC of US$1.60/lb.
 * An IRR (post tax) of 16.2%.
 * An NPV (5%) of A$501 million (post tax).
 * Pre-production capital cost of US$410M (A$585M).
 * EBITDA (annualised) of A$152.7M.
 * A copper-gold project with an initial 13+ year mine life (Stage 1) at a processing rate of 6Mtpa.
 * A head grade of 0.66% copper and 0.17g/t gold for the first 12 years.
 * An annual average production of 35,000t copper and 24,000ozs gold for the first 12 years.
 * A project that will employ approximately 500-550 during construction and 430 during operations.
 * Life of Project royalties to the State of A$170M.
 * A payroll exceeding A$500M.

Project Summary Fact Sheet and Assumptions

 * Treatment of copper-gold sulphide ore only with known oxides currently excluded.
 * Owner-operator mining.
 * Electricity supplied to the site via the local South Australian power grid with the contract including powerline extension and transformers, paid for using an operating cost per kWh.
 * Fresh water supply provided by South Australia Water, to manage chloride concentration in the process water, paid for using an operating cost per kL.
 * Construction accommodation camp supplied on a pay for use basis under contract.
 * A post-tax NPV (5%) of A$501M and a post-tax IRR of 16.2% with FX of A$:US$ of 0.7.
 * Ownership 100% Rex Minerals Ltd.
 * Location 12km south of Ardrossan, SA.
 * Road access is via Yorke Peninsula Highway from Adelaide.
 * Project will be connected to SA main power grid and SA water network.
 * JORC Mineral Resource of 337Mt @ 0.6% Cu and 0.14g/t Au for 1.97Mt of Cu and 1.42M0z of Au.
 * JORC Ore Reserve of 82Mt @0.62% Cu and 0.16 g/t Au for 509kt of Cu and 431koz of Au.
 * Mining method is conventional open pit drill, blast, load and haul.
 * Assumed owner operator for costing purposes.
 * The strip ratio for the operating life is 6.7:1 (waste:ore).
 * Total average annual rock movement is approximately 60Mt/a.
 * Process flowsheet is standard crush, single stage SAG grind and 3 stage flotation circuit.
 * Main copper mineral is chalcopyrite with subordinate bornite and chalcocite.
 * Processing capacity is 6Mtpa producing approximately 35ktpa of Cu and 25kozpa of Au.
 * Processing recovery is 91.5% for Cu and 77.8% for Au.
 * There is a 20-month construction period.
 * Average of 430 full time employees during production.
 * Pre-production costs of A$585M includes A$523M of fixed and mobile plant capital inc. contingency.
 * Opex of A$26.86/ore tonne is the sum of mining A$14.51/t, processing A$10.43/t and G&A $1.92/t.
 * The C1 cash cost is US$1.38/lb copper inclusive of gold credits.
 * The all in sustaining costs are US$1.60/lb.