After nine months of construction and development,
Weighing 11.7 kg, the bar was produced from oxide ore run through the processing circuit during an 18-day commissioning period. The plant is currently running at about 85% of its capacity, which is rated at 2.5 million tonnes per year. Production is expected to reach full steam by mid-December.
Production is ahead of schedule, and over the past few months 200,000 tonnes have been stockpiled.
In its first year, at full capacity, which is 2.5 million tonnes per year, Thunderbox is expected to produce 220,000 oz. gold at a cash cost of US$110 per oz. Thereafter annual throughput slips to 2 million tonnes as mining encounters sulphide ore. On a yearly basis, the mine is expected to crank out 150,000 oz. at a cost of US$157 per oz. In all, about 800,000 oz. gold will be produced over a mine life of eight years. Capital costs ring in at A$65 million.
About half of Thunderbox’s production has been hedged at US$293 per oz. through Macquarie Bank. That’s US$35 per oz. better than assumed in the bankable feasibility study.
Reserves total 10.9 million tonnes averaging 2.43 grams gold, based on a gold price of US$254 per oz. and a cutoff grade of 0.7 gram for oxidized material and 1.1 grams for primary material.
LionOre owns 60% of the Wildara joint venture, which holds Thunderbox. Australia’s
About 6 km to the north, near its Waterloo nickel-platinum-group-metals deposit, the joint venture has cut a new zone of nickel mineralization. Dubbed Amorac (formerly electromagnetic anomaly MC9), the nickel sulphide deposit is situated 300 metres southeast of Waterloo.
Earlier this summer, two holes collared on MC9 returned up to 6 metres (from 172 metres below surface) averaging 3% nickel and 1.48 metres (from 209.6 metres) of 1.12% nickel.
The latest round of diamond and reverse-circulation drilling was completed on 40-by-40-metre spacings and has defined a 250-metre-long zone of nickel mineralization running at depths of between 90 and 180 metres.
The zone comprises massive and stringer nickel sulphides and is structurally controlled and hosted by sheared, siliceous sediments, with minor associated ultramafic lenses. The mineralization runs up to 6% nickel over widths of up to 6 metres.
Highlights from RC drilling include the following:
o Hole 574 — 4 metres (from 180 metres) grading 3.3% nickel and 0.08% copper, including 1 metre of 6.11% nickel and 0.12% copper;
o Hole 592 — 2 metres (from 115 metres) averaging 3.26% nickel and 0.1% copper;
o Hole 615 — 2 metres (from 74 metres) of 2.97% nickel and 0.1% copper.
Total platinum group element (PGE) values generally run less than 0.5 gram per tonne. Some PGE assay results are still pending.
Selected results from diamond drilling include the following:
o Hole 603 — 0.65 metre (from 107.6 metres) of 2.89% nickel and 0.05% copper;
o Hole 607 — 1.14 metres (from 179.9 metres) grading 2.62% nickel;
o Hole 619 — 6.32 metres (from 202.7 metres) of 3.54% nickel and 0.08% copper, including 2.7 metres of 6.6% nickel and 0.1% copper.
Assay results for PGEs are pending.
The zone remains open along strike to the north and south coincident with an electromagnetic anomaly. LionOre believes Amorac is not directly associated with the Waterloo deposit.
Drilling continues.
South of Amorac, further surface electromagnetic surveying has turned up another eight conductors, bringing to 21 the number of targets in the area. Of the five targets tested so far, three have returned nickel mineralization, including Waterloo and Amorac.
LionOre plans more surveying and preliminary drilling before year-end. A scoping study at Waterloo is expected to wrap up early next year.
In other news, LionOre reports it has boosted its offer for the 20% stake it doesn’t already own in its Australian-listed subsidiary, LionOre Australia (Nickel), by A2.5, to A87.5 per share. Also, the offer was extended by two weeks to Nov. 28, and LionOre’s position in LionOre Nickel has climbed to more than 96%, clearing the way for the company to acquire the remaining shares.
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