Wonawinta Silver Project

Wonawinta snapshot:

  • Largest ‘pure’ silver project in Australia
  • 53Moz Ag indicated / inferred resource
  • 26Moz Ag probable reserve
  • High potential for reserve & resource increases
  • Rapid progression from exploration to development with forecast production in Q1 2012.

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At Wonawinta, the Company has estimated an inferred and indicated resource of 53M ounces of silver, based on a cut-off grade of 22g/t, including a probable ore reserve of 26M ounces of silver.

The project is fully funded and fully permitted and started commissioning in March 2012.

The Company began work on the Wonawinta silver project in 2008. After completing a target mineralisation estimate of 20M ounces of silver early in 2008 the Company undertook two campaigns of resource definition drilling to establish an inferred resource estimate of 31M ounces of silver. Wonawinta is a silver-rich Mississippi Valley-type Ag Pb Zn deposit hosted in limestone.

Preliminary mineralogical and metallurgical test work indicated good metal recoveries of silver and lead from the oxide mineralisation by a combination of cyanide leaching and gravity concentration. The silver occurs in a secondary oxide blanket above primary MVT-style Ag-Pb-Zn mineralisation hosted by the early Devonian Booth Limestone unit.

An independent mining study modelled ore production from a series of four shallow open pits.

Additional prospective ground covering extensions to the mineralisation was acquired.

A second drilling campaign proved the existence of significant southern extensions to the mineralisation within the tenement.

A scoping study indicated a robust and profitable project with modest capital requirements.

A feasibility study began in July 2009 and was completed in June 2010.