September 2013 Quarterly Report

MOLONG PROJECT – COPPER HILL

  • Detailed studies of the potential to develop Copper Hill based on a 3 million tonne per annum mill throughput model were conducted using capital and operating cost data provided by consultants AMDAD and Calder-Maloney and using reasonable metal price and exchange rate assumptions.
  • The project requires additional tonnes, improved grade, higher metallurgical recovery, or a combination thereof. A 5,000 metre drilling program has been planned to drill existing anomalies and new untested zones within the Exploration Licence.

During the quarter, and since the end of the quarter, GCR has conducted a new  Scoping Study for Copper Hill and modelled the economics of a 3 million tonnes of ore per year open pit operation, processing ore through a conventional crush-grind-float mill and plant. Current capital and operating cost estimates for mining and processing were provided by highly regarded mining consulting firms AMDAD and Calder-Maloney.

As with previous studies investigating larger-scale production scenarios, the Scoping Study indicates that the project remains marginal at current copper and gold prices but that the discovery of additional tonnes and improved grade could deliver a more robust project. Similarly, improved metallurgical recoveries would also improve project economics.

Exploration at Copper Hill over the last four years has focused on increasing and improving the JORC categories of the known mineralisation (Measured-Indicated-Inferred JORC-resource of 153 million tonnes at grades of 0.32% copper and 0.28 g/t gold using a 0.2% copper cut-off grade).

Outside the main deposits, prospective areas remain on the margins of Copper Hill, at the Power anomaly, the Hayshed and Vale Head prospects and, to the north, at Larras Lee. (Figure 1) None of these areas have been fully tested and additional drilling is planned. Deeper drilling beneath selected high grade zones at Buckley’s Hill, Copper Hill and Wattle Hill is under consideration to seek additional higher grade tonnes.

Click here to download the complete September 2013 Quarterly Report as a pdf file

 

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