Mining Magazine > Panorama > Rex Minerals releases Hillside copper results

A conceptual study into Rex Minerals’ Hillside project in South Australia has shown that there is potential for a large-scale, long-life mine, which will produce copper, gold and iron ore. The mine, which will be situated 12km south of Ardrossan on the Yorke Peninsula, has been touted as the largest copper discovery since Olympic Dam.
The conceptual study contemplated a staged development plan of the Hillside project, with a minimum 12-year life-of-mine. Rex Minerals has doubled its original copper resource estimate, and has confirmed that a significant amount of iron ore is also present.
Steven Olsen, managing director at Rex Minerals, said: “A lot has been achieved in the past 12 months, and an inventory of this size provides significant development options for the company. For the first time we have also provided an estimate of the iron ore component of the ore body, which can add significant value to the Hillside project. The ability to recover both the iron ore (magnetite) and gold is adding substantial value to the resource which now has a copper equivalent grade of 0.9 per cent copper.”
Stage one production was projected at 45,000t/y of copper, 45,000oz/y of gold and 900,000t/y of iron ore concentrate from a shallow open-pit mine. The second stage of development would access deeper resources, about 40m below the surface, and production is expected to increase to more than 80,000t/y of copper, 70,000oz/y of gold and 1.6Mt/y of iron ore concentrate.
Rex Minerals said in a statement on July 27, that the study had identified start-up capital costs of between US$717.8 million and US$1.15 billion for stage one. Stage two would be funded from stage one’s cash flow.
Mr Olsen added: "The conceptual study supports our view that Hillside is one of Australia's largest copper development opportunities. We also remain focused on the regional opportunity which we believe will lead to further discoveries and the potential to produce over 100,000t/y of copper for years to come, making it Australia's most substantial copper development opportunity outside Olympic Dam.''
The conceptual study results will feed into a pre-feasibility study to be completed in 2012, followed by a bankable feasibility study due in 2013. First production could begin in 2015.
A plant to process 7.5Mt/y of ore would initially draw from South Australia’s power and water grid, but the conceptual study included an independent desalination plant or an expanded water pipeline to the peninsula.