Austral Resources aims to double copper production at the Mount Kelly oxide processing facility north-west of Mount Isa by year’s end.

The company, one of only four pure copper plays on the ASX, produced more than 8231t of highly marketable copper cathode plate last calendar year.

All the variables were falling into place to reach the target as mining of the flagship Anthill deposit wound down to a stop later this month, chief operating officer Shane O’Connell said.

Main image: Copper plate developed ready for export. The Mount Kelly processing plant is an SX-EW process or solvent extraction and electrowinning. This is a two-stage, hydrometallurgical (wet) process used to extract, purify and concentrate copper- in this case from oxide ore – producing high-purity (99.99 per cent) copper cathodes. 

“The mine has 400,000t of ore on the ROM’s and is otherwise advanced in executing the new mining campaigns at Lady Annie through to 2028,” he said.

“The go-to deposits are 87 per cent defined to JORC measured and indicated status.

“Initial estimates, and they are conservative estimates, are that it’s probably five to six years’ worth of mine life there as well. 

“Currently, the planned mine life has pushed out to 2028, we expect that’ll increase out to 2032 … and that’s not taking into account all of the other less advanced copper deposits that we have within a 50km radius of the Mount Kelly processing facility”.

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The transaction facilitating the purchase of neighbouring Lady Loretta from Glencore was a game changer for the company, and had initially opened up access to 18,000t of copper metal in those cutbacks, Mr O’Connell said.

“With the Loretta transaction we essentially removed the fence, if you like, and we now have the access to enable those cutbacks.”

“Lady Annie is a fairly significant cutback in its own right. There’s just under a year’s worth of copper production and probably two years of mine life just in the cutbacks. 

“That gives us a meaningful runway to develop up the additional copper mineralisation within the remainder of the Lady Loretta mining lease.” 

Disclaimer – the author is an Austral Resources shareholder.

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