An Australian subsidiary of Raleigh Energy has commenced mining operations at its Blockade property in the Mount Isa region of Queensland. Powder Metals Australia, the subsidiary, raised $6.5 million(A) last year which now is being used to develop the property.
The company says detailed drilling has upgraded the 333,000 tonnes of proven reserves by approximately 25%. The grade now stands at 2.1% copper. The copper occurs as an oxide and is ideal for production of high grade copper powder (99.5% pure). This product commands a premium on world markets, the company notes.
A formal mine plan has been approved by the Queensland department of mines and treatment rate is expected to be 17,800 tonnes of ore per month. This would yield a minimum 310 tonnes of copper per month which would be treated at a separate facility.
Production costs are estimated to be $1,600 per tonne as opposed to the current cathode price of $2,080 per ton, the company claims. The cupric oxide and sulphate facilities are expected to be on stream in Brisbane by the end of March and the powder facilities in June or July.
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