Name of the Project
Walford Creek copper/zinc/cobalt project.

Location
The project is located in north-west Queensland, Australia.

Client
Aeon Metals.

Project Description
Walford Creek has a mineral resource estimated at 6.6-million tonnes grading 1.25% copper, 0.74% lead, 0.76% zinc, 25.6 parts per million (ppm) of silver, 1 640 ppm of cobalt and 39.8% pyrite.

The preliminary economic assessment (PEA) completed on the project proposes the development of an openpit mine and on-site processing of the Vardy zone, at Walford Creek. The Vardy Zone development is based on a resource that will allow for six years of openpit mining at a production rate of 600 000 t/y of run-of-mine (RoM) material. Material from the openpit will be processed through a conventional mill and hydrometallurgical plant to produce copper, zinc and cobalt concentrates. Concentrates will be transported by road to Townsville for export.

The mining PEA study has been prepared based on a conventional truck and hydraulic excavator operation, with an overall material movement rate of up to five-million tonnes a year to achieve the required 600 000 t/y mill feed rate. The mine plan incorporates an intermediate pit stage in the pit centre before a pushback to the final pit, east and west of the initial stage. The process plant is designed to process ore at a head grade of 1.73% copper, 1.60% zinc, 50.89% iron and 2 118 g/t cobalt.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
The estimated capital cost to first production is $97.4-million, including $7-million in contingency.

Duration
Subject to funding and necessary government approvals, production of copper (with silver credits), zinc and cobalt concentrates is planned to start in the first quarter of 2019.

Latest Developments
The drill programme planned for the project in 2017 will be focused on mine-life extension and/or project scale-up.

The Vardy Zone is open along strike to the north-east and extension drilling is planned to start in the second quarter of 2017. In addition, drilling to the west and within the current global resource aims to identify additional near-surface openpit resources to significantly extend the current projected mine life and/or increase the yearly production rate of the Vardy Zone project.

A bankable feasibility study is expected to be completed by the fourth quarter of 2017, with first production expected in the first quarter of 2019.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Aeon Metals, tel +61 7 5574 3830, fax +61 7 5574 3568 or email info@aeonmetals.com.au.