New finds boost Ernest Henry mine life potential

New drill results from Ernest Henry show significant copper-gold extensions beyond the area already earmarked to support a potential mine life extension project at the Evolution Mining site. Key intercepts include 157.0m grading 1.26g/t gold and 1.62 per cent copper; 102.0m grading 1.06g/t gold and 1.39 per cent copper; and 90.8m grading 1.42g/t gold and 1.54 per cent copper. The results support the mine extension prefeasibility study that Evolution has underway and represent potential for further life-of-mine extension. Executive chair Jake Klein said the exploration team was making good progress with the ongoing drilling program, which continued to focus on opportunities to demonstrate continuity and extensions to the orebody. "The outstanding copper-gold grades and widths in the new drilling results demonstrate the exciting potential for mineralisation to extend up-plunge and at depth," he said. "This showcases the significant opportunity that exists to extend the life of this high-margin operation." The new drill results will be incorporated in the annual Mineral Resource update to be released in the March 2023 quarter. North-south section looking west of the Ernest Henry mineralisation. The latest drilling is shown in red. In an AGM address today, Mr Klein described the transaction which saw Evolution acquire the balance of the Ernest Henry asset from Glencore as one of the most important transactions in the company's history. Evolution originally acquired an economic interest in Ernest Henry in 2016 via joint ventures that delivered 100 per cent of gold and 30 per cent of copper and silver produced within an agreed life-of-mine area. It proceeded to secure total ownership of the Cloncurry operation in a $1 billion deal early this year. "The acquisition delivered an immediate and substantial increase in cash flow generation, lowered our AISC and has clear growth potential," Mr Klein said. "This growth potential was clearly demonstrated in August 2022, when we released an updated Mineral Resource estimate for Ernest Henry that captured 119 new drill holes and resulted in a 28 per cent increase in contained copper to 1.13 million tonnes and a 24 per cent increase in contained gold to just over 2 million ounces. "Today we have again demonstrated the world class nature of the deposit with our ASX release providing an exploration update for Ernest Henry. "The recent drilling results from our ongoing exploration program showcase the enormous opportunity at Ernest Henry, with drillholes intersecting significant mineralisation widths within the pre-feasibility study area and below."

New finds boost Ernest Henry mine life potential

Industry Queensland

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