Stavely Minerals unveils ‘standout’ maiden resource for Cayley Lode

Stavely Minerals (ASX: SVY) has unveiled what it describes as a “standout” maiden resource for the Cayley Lode within its Stavely copper-gold project in western Victoria.

The maiden resource totals 9.3 million tonnes at 1.2% copper, 0.2 grams per tonne gold and 7.1g/t silver for 252 million pounds of copper, 65,000 ounces of gold and 2.1Moz silver.

Underpinning the resource, was an intensive two-and-a-half year drill-out of the Cayley Lode.

Stavely executive chair Chris Cairns said the maiden resource for the Cayley Lode deposit was a “significant milestone” for the company.

Within the estimate, 5.87Mt at 1.04% copper, 0.23g/t gold and 7g/t silver are classified as indicated, while inferred resources comprise 3.4Mt at 1.6% copper, 0.2g/t gold and 8g/t silver.

The estimate also is made up of underground and open pit components.

“Of the proportion of the initial Cayley Lode mineral resource estimate that falls within an optimised pit shell, 73% of this material is in the high-confidence indicated category,” Mr Cairns noted.

He added the maiden resource for Cayley Lode was considered a “starting point”, with “enormous” potential to grow the estimate with mineralisation present at depth below the initial open pit.

“The deposit remains open in a number of directions, and we have already seen considerable potential for further high-grade mineralisation along strike to the southeast and at depth.”

Previous drilling at depth within the deposit intercepted 18m at 3.62% copper, 0.28g/t gold and 15g/t silver from 848m.

“There is more work to be done to define the first few years of underground production and, beyond that, it will be far more economical to drill deeper from underground drill positions (and with cash flow),” Mr Cairns explained.

“I believe this amazing copper deposit has significant potential to be developed and could support a 20-year plus operation.”

Resource updates

As well as unveiling the maiden resource for Cayley Lode, Stavely reported updates to its other resources in western Victoria.

The Chalcocite-Enriched Blanket resource totals 18Mt at 0.41% copper, 0.04g/t gold, and 1.6g/t silver for 164Mlb copper, 21,000oz gold and 900,000oz silver.

An estimate for Thursday’s Gossan now stands at 27.3Mt at 0.69% copper, 0.1g/t gold and 3.4g/t silver for 416Mlb copper, 86,000oz gold and 3Moz silver.

The Carroll’s VMS deposit was also updated with an estimate of 1Mt at 2.2% copper, 0.4g/t gold, 5.6g/t silver, and 0.2% zinc for 47Mlb copper, 13,000oz gold, 180,000oz silver and 2,400t zinc.

Across its portfolio, Stavely now has global resources of 28.3Mt 0.75% copper, 0.11g/t gold, 3.5g/t silver for 463Mlb copper, 100,000oz gold and 3.20Moz silver.

Mr Cairns said the revised resources for its portfolio in western Victoria puts the company on a clear trajectory towards development.

“The outlook for copper is extremely positive given its critical role in the de-carbonisation of the world economy and medium-term demand will clearly outstrip supply, as predicted by a number of reputable commodity supply/demand forecast institutions,” Mr Cairns said.

“We see the Stavely Province in western Victoria playing a key long-term role in supplying the copper the world will need for a cleaner future.”