Aeris Resources Ltd's (ASX:AIS) exploration at Constellation deposit, within the company’s operating Tritton tenement package in New South Wales, has extended copper sulphide mineralisation at depth and along strike.
All five diamond drill holes have intersected copper mineralisation with two intersecting around 20 metres thick sulphide packages with visual chalcopyrite (assays pending) along the southern margin.
Mineralisation at Constellation has been traced to date 200 metres along strike (previously 120-150 metres) and 850 metres down plunge.
In addition, a recently completed DHEM survey has identified two large (75 x 350 metres) moderate to strong conductance (1,500S to 2,000S) EM plates which extend around 300 metres further down plunge.
Including the modelled EM plates, the mineralised system is continuous 1,150 metres down plunge.
“Potential for significant discovery”
Drilling is continuing at Constellation, with two diamond drill rigs and an RC rig on site.
Aeris executive chairman Andre Labuschagne said: “With three drill rigs operating at Constellation currently there is a lot happening.
“What is pleasing is that Constellation continues to surprise on the upside.
“These latest results, which indicate strike and depth extensions, further increase the potential for the Constellation deposit to be a significant discovery.
“There is more work to do but we like what we see so far.”
Notably, the southern EM plate has not been drill tested yet and will become a priority target when diamond drilling resumes testing depth extensions.
Cross-section through the Constellation deposit showing completed drill holes and significant assay results through the oxide and supergene copper horizons.
Deleveraging ahead of schedule
The company also advises that it has made further voluntary debt repayments of around A$20.5 million in advance of its original debt repayment obligations ahead of schedule.
Labuschagne said: “FY21 has been an exceptional year for Aeris, including our steps taken to continue to de-lever the balance sheet.
“We have now repaid A$48 million since July 1, 2020, and will finish this financial year with remaining debt of US$20 million.
“Resetting the business over the last 12 months now allows us to focus on extending the mine lives at both operations by progressing projects in our development pipeline and continuing to aggressively explore.”
Re-profiled FY22 repayments
Aeris has also agreed a re-profiling of repayment commitments in FY22 with its financier Special Opportunity V Limited (SPOV), lowering funding commitments during this period by almost A$6 million – with additional operating cashflows to be directed to mine life extension projects.
Cash backing of the Contingent Instrument Facility for environmental bonding obligations (which has an outstanding balance of A$10.5 million), will be accelerated and fully extinguished by early Q4 FY22, around 14 months ahead of the original schedule, also lowering borrowing costs.
Debt repayments on Tranche A in FY22 will be reduced from US$10 million (US$2.5 million per quarter) to a total A$2 million, which will be paid at the end of Q4 FY22.
The debt repayment profile for Tranche A in FY23 remains unchanged.
Trading halt granted
The company has today been granted a trading halt with an announcement pending in regard to a proposed capital raising.
This halt will remain in place until the company makes an announcement to the market in relation to the outcome of the capital raising or the commencement of trading on Tuesday, June 15, 2021.