Golden Cross Resources (ASX:GCR) is a mineral explorer with a copper-gold focus. Its major activity is the Molong-Copper Hill copper-gold project in central NSW. GCR also has other high quality projects across Australia as well as joint ventures funded and managed by GCR’s partners.
The Copper Hill Constrained Resource, (Lewis Mineral Resource Consulting, see ASX announcement 13 Dec. 2011) of 153 million tonnes, contains, at a cut-off grade of 0.2% copper and with average grades of 0.32% copper and 0.27g/t gold, 493,200 tonnes of copper and 1.33 million ounces of gold within a defined, constrained and optimised open pit.
Future drilling efforts will be aimed at discovering new zones beyond the current Resource. Metallurgical studies have been completed achieving copper and gold recoveries of 83% for copper and 70% for gold and producing a 24% copper concentrate containing 24g/t gold.
Completion of the Scoping Study was achieved at the end of 2011 based on an expandable 2Mtpa mill capacity. Financial modelling, using this throughput rate, ‘bankable’ copper/gold prices and a capital cost estimate of $155 million, did not yield results sufficiently encouraging to proceed. On this basis, a Definitive Feasibility Study has been deferred pending the emergence of any, or a combination of, the following factors: alternative mill throughput options, improved copper and gold prices, increased tonnes and grades and lower-cost processing technology.
On other fronts, GCR has defined a near-surface gold resource at Cargo, it has prospective tenements for IOCG mineralisation in the Gawler Craton of South Australia, exploration tenements with drill targets in the Cobar-Nymagee district (notably the historic Burra copper mine), large undeveloped phosphate resources near Mount Isa (farmed out) and retains an interest in the prospective Mulga Tank nickel-gold project in the Yilgarn Province of Western Australia.
Heron Resources provided, in March 2014, over $1.8 million by way of a placement to GCR with the bulk of those funds directed to a major drilling program at Copper Hill. Heron is now GCR’s largest shareholder with a shareholding of 19.9%. Heron personnel have designed the proposed drilling and test-work programs which all hope will lead to a larger resource, with improved grades, at Copper Hill. In October-November 2013 shareholders provided funds via a rights issue that raised $750,000 for additional work at Copper Hill, for drilling the IOCG targets in South Australia and for additional drilling near Cobar and at Cargo. GCR’s other major shareholder, HQ Mining Resources Holdings, was unable to participate in the 2013 rights issue but has contributed greatly in the past and has indicated its continuing support for GCR and its exploration activities.
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