Anax Metals unveils mineral resource estimate for high-grade Evelyn deposit
The Evelyn copper-zinc-silver-gold deposit expands the global resources at Anax Metals’ Whim Creek project to more than 10 million tonnes.
Anax Metals (ASX: ANX) has announced a JORC 2012 mineral resource estimate for its high-grade multi-commodity Evelyn deposit within the Whim Creek copper project in Western Australia’s Pilbara region.
According to the explorer, the deposit has been estimated to contain 550,000 tonnes at 2.19% copper, 3.49% zinc, 0.8 grams per tonne of gold and 35g/t silver.
As a result, this estimate has expanded the Whim Creek project’s global resources to more than 10 million tonnes.
Anax has now updated its scoping study for the project, incorporating an increased production target based on the addition of the Evelyn mineral resource as a potential open pit.
Updated scoping study
Anax’s initial scoping study was released last August and investigated the mining of defined mineral resources at the Mons Cupri, Whim Creek and Salt Creek deposits.
The updated study now includes the Evelyn deposit and indicates the concentrator will produce 39,000t copper, 70,000t zinc, 18,000t lead, 1.8 million ounces of silver and 14,300oz gold.
The study has switched from gas-fired power to diesel generated power, delivering both cost and environmental benefits, and now incorporates results from bacterial sulphide leaching test work and updated base case zinc price assumptions from US$2,300 per tonne (currently A$3,190/t) to US$2,750/t (A$3,815/t).
The scoping study also indicates free cashflow of $291 million (on a 100% project basis), a pre-production capital cost estimate of $55 million, an internal rate of return of 83% and net present value of around $227 million.
Anax managing director Geoff Laing said the company is “very pleased” with the results of the updated study.
“Near-term sustainable production from this valuable copper asset in the Pilbara remains the focus of the Anax team,” he said.
“The definitive feasibility study is in progress, and we are excited to be at the forefront of using smart technology to enhance project outcomes and deliver measurable environmental benefits,” Mr Laing added.
Anax operates the Whim Creek project with an 80% interest with the remaining 20% stake owned by Develop Global Limited, formerly Venturex Resources.