Aeris Resources Ltd (ASX:AIS) has updated the mineral resource estimate at its Budgerygar deposit, increasing total tonnage by 15% to 2.6 million tonnes and total contained copper metal also by 15% to 39,000 tonnes.
The updated resource also includes 720,000 tonnes at 1.7% copper in indicated mineral resources at the deposit in central New South Wales.
This updated mineral resource estimate focused on the upper third of the known deposit.
Budgerygar deposit is one of three new ore sources being developed at the company's Tritton Copper Operations in the 2022 financial year.
Uplift in grade
Aeris executive chairman Andre Labuschagne said: “The Budgerygar deposit is one of three life-of-mine extension projects, along with Avoca Tank underground mine and Murrawombie Pit cut-back, that we are developing at the Tritton Copper Operations in FY22.
“With the Budgerygar deposit being only 600 metres from the Tritton underground mine infrastructure and commencing from 70 metres below surface, the cost and time to bring into production are significantly lower compared to a new standalone mine.
“The drilling program to date has focused on the upper third of the known deposit, enabling a large portion of this section of the deposit to be upgraded to the indicated mineral resource category.
“Interestingly, the copper and gold grades for the indicated resource are higher than those reported in the inferred category.
“This uplift in grade as drill density increases is similar to what we saw in the upper sections of the Tritton deposit."
Shares are up 4.52% to A$0.162 and the company's market cap before opening was approximately A$347.7 million.
Continuing resource drill program
“Our immediate focus is to continue the resource drilling program over the remainder of the inferred mineral resource," Labuschagne said.
"However, the deposit remains open at depth and in FY23 we intend to drill a couple of deeper holes to get a better understanding of potential continuity of the deposit at depth.”
Budgerygar deposit
Copper mineralisation at the Budgerygar deposit is similar to other copper deposits discovered within the Tritton tenement package, including the Tritton deposit 600 metres south from Budgerygar.
Drilling at the Budgerygar deposit has traced the mineralised system 750 metres down plunge to date and remains open down plunge.
Resource definition drilling is ongoing, testing deeper mineralisation within the inferred resource.
The first development ore is targeted for the March quarter in the financial year 2022 and first ore from stoping is targeted in the June quarter of FY22.