Aeris Resources Ltd (ASX:AIS) has achieved above forecast copper production of 26,852 tonnes for FY19 at a C1 cash cost of $2.78 per pound at its Tritton Copper Operations in New South Wales.
The company has exceeded its original production guidance released in July 2018 of 24,500 tonnes at a C1 cash cost between $2.75 and $2.90 per pound.
Aeris executive chairman Andre Labuschagne said the excellent production result by Aeris’ team at Tritton was one of multiple operational and corporate successes for the company in FY19.
Production results
Labuschagne added: “The Tritton Copper Operations continue to deliver outstanding and reliable performance, with the above guidance production being the result of on-plan ore production and higher than planned copper grades from both the Tritton and Murrawombie underground mines.
“Despite the impact of the weakening currency over the last 12 months on our US dollar treatment and refining charges and sea-freight costs, we maintained C1 Cash Costs within the lower end of the guidance range provided in July 2018.”
Labuschagne said the Murrawombie underground mine had continued to provide upside beyond expectations, in terms of both grade and tonnes.
“Recent grade control drilling has identified potential for the ore body to continue along strike to the north, outside of the current mineral resource.
“Drilling is scheduled in the first half of FY20 to explore this potential extension to the ore body.”
Exploration
Aeris’ exploration activities were conducted on two fronts in FY19; regional exploration around Tritton to further leverage existing infrastructure in the region and drilling of the Torrens Project in South Australia.
Tritton
An aerial electromagnetic (EM) survey was conducted on a small section at the northern extremity of the tenement package in 2017, from which four EM anomalies were identified.
At the beginning of 2019, a more extensive aerial EM program was conducted from which a further 25 new anomalies were identified, of which nine are considered higher priority targets.
READ: Aeris Resources shares rise after identifying 25 new anomalies at Tritton
Labuschagne said: “Having such a significant inventory of anomalies to work with is exciting in that it potentially positions FY20 as a significant year for continued exploration success at Tritton, as we look to progress these anomalies to drill targets.”
Torrens JV (Aeris 70%)
After years of persistence and patience by the Torrens Joint Venture partners, drilling activities commenced in January 2019.
The Stuart Shelf region of South Australia is characterised by significant levels of cover (in excess of 500 metres within the project area) over the basement (potential copper-gold bearing rocks).
In addition, a significant portion of the prospective drill target zones occur beneath Lake Torrens.
These factors increase both the cost and technical difficulty of drilling.
Labuschagne said: “We remain excited by the potential of the Torrens Project while also being cognisant of the technical and geological complexities.
“Our aims are to increase the chances of discovering a deposit and to make every dollar count.
“Significant discoveries in the Stuart Shelf region have been the result of persistence and technical due diligence.”
Corporate
In the first half of FY19, Aeris completed an equity raising of about $35 million, the funds from which were used to reduce debt by US$20 million and accelerate exploration activities at both the Tritton Copper Operations and the Torrens Project.
Since the beginning of 2013, debt has been reduced by more than US$100 million.
Labuschagne said: “We have always said that our aim is to become a mid-tier, multi-mine company.
“For the first time in some years the board believes Aeris’ balance sheet is sufficiently robust to pursue growth through suitable M&A opportunities.
“In summary, FY19 was a successful year for Aeris on multiple fronts and has set FY20 up to be an exciting year as we seek opportunities to grow the company, both organically through a number of exciting exploration opportunities, and through M&A.”