AIC Mines is pushing ahead with exploration, tunnelling and processing expansion at its Eloise operation south of Cloncurry as copper prices trade near historic highs.

The company is advancing the Jericho mine, 4km south of Eloise, through a 3km underground link drive connecting the deposit to the existing Eloise decline.

Main image: Jericho Core

Managing director Aaron Colleran said the Eloise processing plant upgrade was also coming together on time and on budget as copper prices strengthened.

“That takes the Eloise plant from 700,000tons/pa per to 1.1 million tons per annum. That’s on schedule to be commissioned in the December quarter this year.

“Again, the aim was to deliver copper into the copper boom, not build a mine in a copper moon in a copper boom, but to actually deliver a mine and produce copper into that boom.

“It’s just sensational now to be moving from 12,500 tonnes into what will be 20,000 tonnes/pa copper in the first instance on that 1.1 million ton/pa plant at a time where copper’s gone from $4/lb to over $6/lb.

“It makes a remarkable difference to how we pay down our debt, what we do and what we do with that additional funding.”

Eloise is in its fourth decade of operation after being discovered by BHP and later owned by Amalg Resources and interests associated with Barminco founder Peter Bartlett.

AIC acquired Eloise in 2021 and has since been working to expand the operation’s production base through Jericho and regional exploration.

Mr Colleran said the company was investing while market conditions supported copper development.

“There’s a project that’s been going for 30 years. Any company, junior, mid-tier would love a project like that. The heart, the gut of Eloise at the upper levels was running 4 per cent copper.

“Could you just imagine finding a project like that today? And it’s what we know about Eloise, the structural controls.

“We’ve fallen in love with Eloise. A deposit that can produce four to six per cent copper stops with one to two grams of gold there means that we’re exploring that region with vigour and with as much capital as we can at this stage afford.”

AIC’s website says the Eloise operation has produced more than 376,000 tonnes of copper and 195,000oz of gold since commissioning in 1996.

The company says Jericho will transform Eloise into a cornerstone asset by lifting production, reducing costs through economies of scale, extending mine life and increasing the number of available ore sources.

Copper was trading at about A$19,700/t on Tuesday, based on June 9 commodity and currency data.