Pine Point Copper Belt : South Australia : Overview
Rex Minerals has exploration licences in one of the most prospective locations in the world for large-scale copper-gold deposits. The licences are located in South Australia, within a geological terrane called the Gawler Craton. The Gawler Craton hosts Australia’s largest historical copper mines which occur at Moonta, which is within 50 kilometres of Rex’s exploration licences on the Yorke Peninsula.
Most of the rocks in the Gawler Craton are covered by a sequence of younger rocks that have effectively hidden many large copper deposits from the early explorers. In more recent times, exploration underneath these cover rocks has lead to the discovery of Olympic Dam – which is Australia’s largest copper deposit and also one of the world’s largest polymetallic deposits.
Additional discoveries such as Prominent Hill and Carapateena have shown that there is further potential to uncover large-scale copper-gold deposits within the Gawler Craton.
Pine Point Copper Belt : South Australia : Hillside Project
In 2009 Rex made a significant copper discovery at the Hillside Project, which is situated within a two hour drive of Adelaide on the Yorke Peninsula. The Hillside Project is one of many targets that exist along the Pine Point Copper Belt, which are the foundation to Rex’s objective of creating a new large-scale and long-life copper operation in South Australia.
At Hillside, Rex has discovered copper-gold mineralisation on three separate structures, the Zanoni, Parsee and Songvaar. These structures are broadly defined by a magnetic anomaly that exists over an area that is 2 kilometres long and 500 metres wide.
Pine Point Copper Belt : South Australia : Hillside Project – Geology
Drilling at Hillside has defined extensive copper mineralisation associated with this magnetic anomaly. The copper has been defined from 10 metres beneath the surface to a depth of over 500 metres.
Pine Point Copper Belt : South Australia : Hillside Project – Mining
Rex completed conceptual mining studies at Hillside in 2011, the details of which were announced on 27 July 2011. The optimal production rate identified in the study is approximately 15Mt per annum, accessing ore over two stages in an open pit mine.
At this level of production, the Hillside mine is anticipated to produce over 70,000 tonnes of copper, 50,000 ounces of gold and 1.3 million tonnes of iron ore. Rex is currently completing a pre-feasibility study at Hillside which will refine the mine design and expected production levels at Hillside. The pre-feasibility study is targeting production levels at the optimum rate for a minimum of 10 years.
Hillside Project Conceptual Pit
Hillside Project Conceptual Pit
Pine Point Copper Belt : South Australia : Hillside Project – Metallurgy
The primary copper mineralisation at Hillside is dominated by the copper mineral chalcopyrite which is typically found in association with magnetite and pyrite. This mineralisation is interpreted to occupy as much as 85% of the Hillside deposit.
Initial metallurgical test work on this type of ore has revealed the following:
- Primary Copper recovery ranges from 90 to 94%.
- Gold recovery ranges from 75 to 77%.
- Magnetite is also recoverable and produces an iron concentrate with over 65% Fe.
Pine Point Copper Belt : South Australia : Hillside Project – Resource
The Hillside project was the first target to be tested on the Yorke Peninsula by Rex soon after its listing on the ASX in late 2007. Early indications of significant copper mineralisation were intersected in June 2008 and the discovery of large-scale copper mineralisation confirmed in January 2009.
Following the initial discovery of copper mineralisation at Hillside, it was shown that the copper had a close relationship with the mineral magnetite and, that as a result, a detailed magnetic survey could be used to effectively “see through” the shallow cover rocks to uncover the extent of the copper mineralisation at Hillside. A detailed magnetic survey was subsequently completed in August 2009 and drill testing of the many detailed magnetic features from this survey at Hillside continued throughout the remainder of 2009.
As Rex had confirmed that the magnetic survey was the key to uncovering the extent of the copper mineralisation at Hillside, a large drilling campaign commenced in early 2010. The resource definition drilling has been ongoing for over 18 months with the latest Mineral Resource estimate published on 27 July 2011. The Mineral Resource estimate at Hillside currently stands at 217Mt @ 0.7% copper, 0.2g/t gold and 12.4% iron.
Hillside Project Inferred Mineral Resource
Refer to Diagram Below
217Mt @ 0.7%Cu, 0.2g/t Au and 12.4% Fe
Total Target Size: 1.6 to 2.1Mt copper*
Hillside Image indicating Resource Boundaries and Target Areas
Hillside Target Range Graph
*The total target size is conceptual in nature. There has been insufficient exploration to define a Mineral Resource in excess of that currently announced, and while Rex has confidence in this target statement, it is uncertain if further exploration will result in the determination of additional Mineral Resources – This statement is made in accordance with the requirements of Clause 18 of the JORC Code 2004.
Pine Point Copper Belt : South Australia : Hillside Project – Infrastructure
The Hillside project and the other copper targets on the Yorke Peninsula have a number of key advantages compared to many other new copper development opportunities around the world. These include:
Infrastructure – A major highway connects the Hillside project to numerous major ports.
People and Equipment – The Hillside project is connected by a major highway (within a 2 hour drive) to the city of Adelaide (population 1.2 million). The Hillside project has the potential to draw most of the required skilled labour and equipment from Adelaide.
Power – The area is connected to the State’s main power grid.
Port and Town – The Hillside project is 12 kms from the Port and Town of Ardrossan. Ardrossan is a community familiar with mining given that an open cut dolomite mine is nearby and ships product through the Port.
Port of Ardrossan
Map of Yorke Peninsula indicating main roads and ports
Aerial view showing position of the Hillside Project Area
Pine Point Copper Belt : South Australia : Hillside Project – Regional Potential
Hillside Project
Inferred Mineral Resource 217Mt @ 0.7% Cu, 0.2g/t Au and 12.4% Fe
Total Target Size 1.6 to 2.1Mt copper*
Parara Discovery
PDD011
34m @ 0.6% copper from 29m
Multiple Large-scale Copper-gold Targets
Pine Point Copper Belt: Regional Magnetic Map
Pine Point Copper Belt: Regional Gravity Map
A number of new high priority targets have been defined in close proximity to Hillside, including the Equis target which is 3km to the north-east of Hillside. Many of these targets display combined magnetic and gravity anomalies (typically offset from each other). Such characteristics are all considered to be important attributes of the Olympic Dam, Prominent Hill, Carapateena and the Hillside discoveries.
Of particular note is that many of the recently defined targets have greater magnetic and/or gravity anomalies than the Hillside project. The Rex team remains confident that the Yorke Peninsula will host multiple large scale copper-gold deposits and have committed to a substantial diamond drilling campaign over 2011/12 designed to prove this concept.
Equis Anomaly and Hillside Project: Magnetic Map
Equis Anomaly and Hillside Project: Gravity Map
3D Model of Equis Anomaly Target
Pine Point Copper Belt : South Australia : Path to Development
