AIC Mines’ Copper Resource Expansion Outpaces Depletion, Sustaining Growth at Eloise

AIC Mines Ltd (ASX: A1M) has boosted resources and reserves at the company’s Eloise, Sandy Creek and Artemis projects in North Queensland.

Since commencing in 1996, Eloise has since produced over 350,000 tonnes of copper and 180,000 gold ounces.

Importantly for growth, resource definition and extension drilling has again replaced mining depletion at Eloise.

This allowed the company to end 2023 with more resources and reserves than at the beginning.

Aaron Colleran, managing director, commented:

“It’s also great to bring two of our Eloise regional prospects, Sandy Creek and Artemis, onto the Mineral Resource ‘balance sheet’ as we start to better define the hub and spoke mining strategy that will keep the Eloise processing plant crushing, grinding and floating well beyond 2034.”

Mineral resources

Sandy Creek and Artemis are both 20 kilometres from Eloise.

The combined resources at Eloise, Jericho, Sandy Creek and Artemis have increased to 22.9 million tonnes at 2.1% copper and 0.5g/t gold for 471,950 tonnes of copper and 353,950 gold ounces.

The ore reserves at Eloise and Jericho have increased to 5.6 million tonnes at 2.1% copper and 0.5g/t gold for 119,200 tonnes of copper and 84,050 gold ounces.

Conservative estimate

With just a focus on Eloise, resources have increased to 154,750 tonnes of copper and 135,250 gold ounces, for a 13% increase in copper and a 14% increase in gold during 2023, net of mining depletion.

Ore reserves increased to 58,100 tonnes of copper and 47,050 ounces of contained gold, representing a 10% increase in copper and a 9% increase in gold, net of mining depletion.

The updated Eloise resource is based on a conservative long-term copper price of A$10,500 a tonne.

A strong upward movement in the red metal has copper currently trading at A$14,800 a tonne.

The company acquired the Eloise asset in November 2021, and expansion is now underway to transform this into a cornerstone asset with a mine life of over 10 years.

Financial metrics

AIC Mines has a market capitalisation around $190 million based on the last traded price of $0.415, with $26.7 million in cash and no debt.

This provides an enterprise value around $160 million.

There are also 453 tonnes of copper in concentrate awaiting shipment, with a notional value of $6.1 million.

The company is building a portfolio of mines through exploration, development and acquisition.

 

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