TriAusMin (ASX: TRO, TSX: TOR) is aiming to expand and upgrade the high grade mineralisation at its Woodlawn base metal deposit, located in the mineral-rich Lachlan Fold Belt of New South Wales, with a new drilling program.
The company has begun a five to six hole, 2,900 metre drilling program that will further test the I, I2 and D lenses, including the downhole electromagnetic target identified in the 2012 drill program.
The program will assist in defining high grade mineralisation not accessed by previous mining operations and, importantly, above the base of the existing mine access drives.
This improves accessibility and reduces the cost to reach these areas as much of the access infrastructure is in place, subject to refurbishment.
Wayne Taylor, managing director, commented: "This drilling will allow TriAusMin to continue its progress toward determining the optimal way to reactivate mining of this very high grade copper, zinc, lead, silver and gold deposit in the near term while we continue to advance the financing for the development of the Woodlawn Tailings Retreatment Project."
Initial results from this work are expected to become available in late February.
2012 high grade intercepts
The 2012 drilling program recorded high grade drill intercepts from the I, I2, D, B and J lenses, down plunge of previous mining excavations.
Significant recent intercepts in and around the current target areas included:
- 9.9 metres at 1.64% copper, 1.22% lead, 6.09% zinc, 14 grams per tonne (g/t) silver and 0.72g/t gold from 543 metres;
- 14.5 metres at 3.66% copper, 3.71% lead, 11.72% zinc, 121g/t silver and 1.92g/t gold from 551 metres; and
- 9 metres at 2.92% copper, 4.64% lead, 8.61% zinc, 167g/t silver and 2.07g/t gold from 564 metres.
- 7.3 metres at 1.86% copper, 1.82% lead, 6.08% zinc, 54g/t silver and 2.89g/t gold from 631 metres; and
- 8.9 metres at 2.7% copper, 3.02% lead, 6.34% zinc, 71g/t silver and 1.24g/t gold from 648 metres.
- 15 metres at 0.17% copper, 1.94% lead, 5.04% zinc, 22g/t silver and 0.19g/t gold from 676 metres;
- 8 metres at 1.18% copper, 3.88% lead, 10.67% zinc, 57g/t silver and 0.6g/t gold from 700 metres.
The Woodlawn project is located in proximity to other known polymetallic deposits in the region with expansion potential - like the 35,000 tonne at 2% copper, 2.6% lead, 4.2% zinc, 95g/t silver and 1.8g/t gold Cowley Hills Mine.
The Woodlawn Property is centred on the past producing Woodlawn Mine located 30 kilometres south of the town of Goulburn and 200 kilometres south-west of Sydney.
The property hosts two significant base metal deposits consisting of the Woodlawn Underground Project and the Woodlawn Tailings Retreatment Project.
The Woodlawn Mine processed 13.8 million tonnes at a grade of 9.1% zinc, 3.6% lead, 1.6% copper, 74g/t silver and 0.52g/t gold between 1978 and closure in 1998.
Ore was sourced from a number massive sulphide lenses mined to a maximum depth of 630 metres below surface.
An Indicated Resource of 8.6 million tonnes at 10.3% zinc, 4% lead, 1.8% copper, 84g/t silver and 0.5g/t gold and an Inferred Resource of 1.5 million tonnes at 9.6% zinc, 4.1% lead, 1.7% copper, 87g/t silver and 0.6g/t gold remains in and around the existing mine workings.
Drilling carried out in 2012 by TriAusMin intersected significant thicknesses of high grade mineralisation supporting the view that the deposit extends down plunge for at least a further 200 metres below the old mine workings.
TriAusMin is working to determine the size and tenor of the Woodlawn base metal deposit and re-establish mining operations in the near term.
The Woodlawn Tailings Retreatment Project involves the reprocessing of the tailings produced by the former Woodlawn Mine to produce separate zinc, copper and lead concentrates that contain by-product silver and gold.
The project contains Proven and Probable Reserves of about 11.2 million tonnes at an average grade of 2.2% zinc, 1.3% lead, 0.5% copper and by-product 31g/t silver and 0.3g/t gold.
TriAusMin, based on a Feasibility Study which indicated a solid economic return at forecast metal prices, has made a decision to develop the project at a rate of 1.5 million tonnes per year for a mine life of about 7.5 years.
Construction of the Woodlawn Tailings Retreatment Project is subject to arranging financing for the capital development costs and completion of the statutory permitting process.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.