Maronan Deposit - Preliminary Mine Scoping Study
Red Metal Limited has completed a Preliminary Mine Scoping Study (“Study”) on the inferred lead-silver and copper-gold resources at the 100% owned Maronan Project located some 100 kilometres north of South32’s Cannington lead-zinc-silver mine in Northwest Queensland.
The Study provides strong impetus for the project and Red Metal will use it as a basis for further evaluation towards potential development and discussions with third parties in seeking joint venture funding.
- The Study examines possible underground mining and processing options and provides a strong case for further infill and step-out exploration drilling to upgrade the resource status and seek extensions as a prerequisite to firming up mining plans.
- Subject to satisfactory completion of significant further work, the Study has highlighted the potential to generate strong positive cash flows for either a stand-alone mining option or, one that assumes trucking ore to an off-site plant. Both scenarios appear robust using current and long term metal price forecasts.
- Simple metallurgy and low grinding cost estimates enable a low cut-off grade of 3.1% lead equivalent for the stand alone operation and 3.8% lead equivalent for the trucking and off-site plant scenario.
- The shallowest potential ore blocks defined by the Study are within about 90 metres of surface suggesting that ore production could be established, with the consequent benefits to mine cash flow, well before decline development reaches the bulk of the deposit.
- The average mining width for the potential ore blocks is estimated to be about 9 metres for the lead-silver horizons and about 13 metres for the copper-gold vein zone.
- The Study indicates that the resources may be mineable at head grades ranging between 7% and 11% lead equivalent to produce high value sulphide concentrate with significant silver credits.