The company announced a 39% increase in the indicated reserve to 14 million ounces and a 20% boost in the probable reserve to 10.2Moz at its proposed Twin Hills mine, about 7km east of the Queensland town of Texas, where initial development will focus.

 

 

Macmin managing director Bob McNeil.

Geochemical and geophysical surveys conducted as part of the feasibility study also indicate the potential to boost the district-wide resource at Texas from its current level of 35Moz of silver to as much as 50-100Moz, Macmin said.

“A mining and resource study which is part of the current feasibility study is expected to be completed by the end of this month, and will target pit optimisation to maximise profitability for Macmin,” managing director Bob McNeil said.

The second draft of the company’s Environmental Management Overview Statement was submitted to the Queensland Department of Mines and Energy in mid-June, and the company expects a mining lease to be granted by October 31. Financing is targeted for completion by September 30.

A 1999 pre-feasibility study indicated the heap and dump leach project has an estimated capital cost of $5 million and a projected average operating cost over the initial three years of $15 per tonne of ore.

On these figures, the net cash flow to Macmin during this three year period would be about $14 million , the internal rate of return 140% and the NPV, at a 12% discount, $9.5 million.

McNeil said the results of the resource increase and the mining and resource study were likely to further improve the economics of the Twin Hills development.

 

Low impact drilling at the Texas project.