YTC Resources (ASX: YTC) continues to unlock the ever increasing potential of the company's 95% owned Nymagee Copper Deposit in the Cobar Basin of New South Wales.
Importantly with the latest intersections, is that the company considers them to be economic grade, with the highlights from the Conductor Plate 2:
- 14 metres at 63 grams per tonne (g/t) silver, 0.2% copper, 2.7% lead and 5.2% zinc from 207 metres; and
- 2 metres at 36g/t silver, 1.4% copper, 1.2% lead and 2.2% zinc from 197 metres.
Where the story gets even more interesting with the new discoveries is that they are positioned just 500 metres north of the Nymagee deposit, which hosts a resource of 8.1 million tonnes at 1.2% copper, 0.3% lead, 0.7% zinc and 9g/t silver.
Rimas Kairaitis, chief executive officer, commented on the positive results and said:
"We have interpreted these high silver-lead-zinc results as the upper part of a potential new mineral system We look forward to generating the next round of DHEM survey to target the next round of drilling.”
Nymagee is fast evolving into a world class deposit with distinct similarities to the CSA Mine operated by Glencore International (LSE: GLEN).
The CSA mine is located 90 kilometres north and along strike of Nymagee. By way of scale, it produces over 1.1 million tonnes of copper ore and produces in excess of 185,000 tonnes of copper concentrate per annum.
The concentrate contains around 29% copper metal and is exported to smelters in India, China and South East Asia.
Scoping level feasibility studies have begun with a view to integrating the Nymagee deposit as a Stage 2 development to the Stage 1 development of the nearby Hera gold deposit.
The Stage 1 development of the Hera-Nymagee Project is expected to be a relatively low-cost, high grade mining operation on the Hera deposit, producing around 50,000 ounces of gold Eq. per annum over a minimum life of 7 years. The Hera DFS indicates a C1 operating cost of A$395 per ounce (after Pb-Zn credits).
Feasibility work to date includes initial metallurgical studies showing the Nymagee copper mineralisation capable of producing high quality copper concentrates at high recoveries.
YTC Resources has been a strong operational performer, macro sharemarket falls notwithstanding. Current valuation does not reflect the intrinsic value inherent in the Hera-Nymagee discoveries, nor factoring in any exploration success in a region blessed with excellent infrastructure.