Elysium Resources (ASX:EYM) has released more drill results from its Burraga project in New South Wales, Australia. Some of the drill holes were aimed at proving up mineralization around the historic Lloyds mine on the land package in order to update and upgrade the historic resource estimate. The Lloyds mine was in production from 1880 to 1920 and then intermittently to 1960 at an average grade of 3-4% copper. Inefficient recovery techniques and a high head grade have resulted in the tailings having a pretty high grade of 1.2% copper. Unfortunately only 234,000 tonnes of ore are classified as ‘waste’ so we don’t think more than 5.5M pounds of copper could be recovered from the tailings, but an updated resource estimate might positively surprise us.
The resource estimate for the tailings is almost ready and then the attention will move towards the hard rock estimates. Obviously the exploration results of 32 meters of 1.47% copper and 9 meters of 2.16% copper will have a very important impact on any hard rock resource estimate. The drilling was focused on a zone which has previously been drilled but where the results weren’t incorporated in a resource estimate yet.
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Disclosure: The author holds no position in Elysium Resources. Please see our disclaimer for current positions.
