Rex Minerals, an explorer listed on the Australian Securities Exchange, announced on Monday that it will begin prefeasibility studies for its Hillside project by the second half of the year. This flagship project for the company is located in South Australia. MD Steve Olsen reported that onground efforts will double during this year, compared to just 12 months ago.
Mr. Olsen reported that Rex is on track for objectives, achieving a second resource update during late 2010 of 1.1 million ounces of gold and 1.2 million tons of copper. The company is increasing from a 47,500 m drill rate to a rate of between 100,000 and 120,000 m this year. This doubling of onground drilling enables the company to be confident about achieving its 2011 objectives.
Currently, inferred resource is 170 million tons grading 0.2 g/t gold and 0.7 percent copper for 1.12 million ounces of gold and 1.2 million tons of contained copper. Rex is also benefitting from several large-scale exploration spots near Hillside. Mr. Olsen believes that these hold “even higher potential.” The company is currently finalizing the conceptual pit designs for stage one mining start. It anticipates moving those studies along with the expected scheduled resource update in July 2011.
Copper recoveries from process test work have ranged between 90 to 94 percent. The mineralization of Hillside also provides a third stream commodity recovery. Magnetite disposition at the deposit is recoverable and producing a 65 percent iron concentrate on tests, according to Mr. Olsen.
The MD reported that the prefeasibility study will begin during the second half of 2011. Throughout 2012, the project will move to a 12-month bankable feasibility study, he said. The mineral resources sector is now the largest single contributor to exports from Australia, representing 35 percent of total exports, an Australian $2.85 billion industry in 2010.
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