Alcyone Resources (ASX Ticker: AYN) is an Australian-based resource company which commenced silver production from its Texas Silver & Polymetallic Project in south-east Queensland in July 2011, and is currently ramping up to an initial annualised production level of 1.2 – 1.5Moz per annum.
The Texas Silver & Polymetallic Project includes the Twin Hills Silver Mine and a portfolio of advanced silver and polymetallic base metal exploration targets. Alcyone has moved rapidly from acquisition of the Project in November 2009, through re-assessment and feasibility and into production, and is on track to achieve steady-state commercial production by Q4 2012.
Alcyone listed on the Australian Securities Exchange on 17 November 2009 (ASX Code: AYN) following the recapitalisation and reconstruction of the former Macmin Silver Ltd (“Macmin”). Macmin was placed into administration in November 2008 following operational challenges at the Twin Hills Mine combined with difficulties in raising additional capital during the Global Financial Crisis.
A subsequent recapitalisation, name change and $4 million capital raising completed in October 2009 resulted in the termination of the Deed of Company Arrangement on 13 October and the Company's emergence from voluntary administration.
Macmin initially commenced aggressive exploration in the Texas region in 1994, and commenced silver production in March 2007. Approximately 500,000 ounces of silver were produced between March 2007 and July 2009.
However, operational difficulties and the significant decline in global equity markets resulted in Macmin being placed into administration in November 2008. The Twin Hills operation was subsequently placed on full Care & Maintenance in July 2009.
Following the recapitalisation, Alcyone commenced work on a program aimed at assessing the potential to resume silver production at Twin Hills. This included verification of historical metallurgical test work to confirm the parameters for a re-design of the processing system, as well as a complete review of all available geological data.
This review led to the recommencement of silver production at Twin Hills in July 2011.
With production now well underway, Alcyone has embarked on an exciting new growth phase with aggressive exploration programs aiming to establish a +10 year mine life and targeting new silver and base metal discoveries within its 260 sq km tenement holding.
In April 2012 Alcyone signed an agreement to acquire a large 900 sq km tenement package from Navaho Gold Limited that lies adjacent to the Texas Project. The acquisition will more than quadruple Alcyone’s land holding in the region. The agreement is subject to technical and commercial due diligence.