Aeris Resources (ASX: AIS) has released its activities report for the three months to June 30, highlighting its best quarter for the 2018 financial year. Aeris produced 7,580 tonnes of copper during the period at a C1 cash cost of $2.10/lb and at an all-in sustaining cost of $2.79/lb. All up, Aeris produced 26,686 tonnes of copper for FY18. The company increase its cash balance at the end of the quarter by $5.1 million to $29.8 million.
JUNE QUARTER HIGHLIGHTS
- Best quarter for FY2018:
- Copper production of 7,580 tonnes
- C1 A$2.10/lb and AISC A$2.79/lb
- FY2018 Copper Production of 26,686 tonnes
- Exciting drilling results from the Kurrajong prospect, including:
- 19.4m @ 2.18% Cu, 0.30g/t Au, 7g/t Ag from 676.6m (TKJD014)
- 4.60m @ 5.09% Cu, 0.79g/t Au, 17g/t Ag from 403.4m (TKJD015)
- 5.65m @ 2.52% Cu, 0.20g/t Au, 6g/t Ag from 418.1m (TKJD015)
- Ground EM survey completed at Tritton
- Airborne gravity survey over Torrens project finalised – 28 gravity anomalies identified
- Cash and receivables at the end of the quarter increased by $5.1M to $29.8M
FY2019 copper production guidance of 24,500 tonnes at a C1 cash cost of between A$2.75/lb and A2.90/lb
Managing Director’s Commentary on FY2018
A number of major capital investment projects were successfully delivered in FY2018, all of which represent a strategic investment in the future of Aeris’ Tritton Copper Operations:
- The Tritton Underground Mine ventilation shaft was commissioned in September 2017. This essential infrastructure ensures that production at Tritton can be maintained at more than one million tonnes per year as mining moves deeper;
- The Murrawombie Underground Mine commissioned in FY2017, ramped up to full production levels during the year; and
- The geophysical survey portion of the two-year, $7.5 million greenfields exploration program which commenced in the first half of FY2017 was completed. This program identified a further 65 kilometres of geological trend strike, multiple new anomalies for further exploration in FY2019 and reaffirmed the EM conductors at the Kurrajong prospect.
Production at the Tritton Underground mine was impacted by lower than plan grade during the first half of the year due to stope sequencing. This was reversed during the second half as sequencing moved back on plan and the higher grade stopes were mined.
Brownfields exploration at the Tritton deposit has identified a number of opportunities to extend the life of this operation, including extensions to the orebody, which remains open at depth. Further drilling and evaluation will be undertaken in FY2019.
At Murrawombie, a revision of the geology model was completed as production ramped up during the year to full production levels. The revised geological model incorporated grade control drilling information and mapping of development drives inside the orebody. The updated information has resulted in a change in mining method with stopes now designed to target more selective mining of higher grade areas of the orebody.
Throughput at the processing plant was impacted by harder ore from both mines, however it continues to deliver excellent copper recoveries and availability. Approximately 1.6 million tonnes of ore was processed during the year with a copper recovery rate of more than 95%. During the period we replaced three of the float cells in the processing plant. In FY2019 we intend to replace the two remaining sets of float cells and the crusher.