Projects
JORC Resource
In March 2010 Alcyone announced an updated JORC compliant mineral resource estimate for the Twin Hills and Mt Gunyan deposits of 5.9Mt @ 79g/t Ag for 15.1Moz of contained silver, comprising:
- 3.8Mt @ 83g/t Ag for 10.2Moz contained silver at Twin Hills
- 2.1Mt @ 73g/t Ag for 4.9Moz contained silver at Mt Gunyan
The resource estimate reflects a thorough and rigorous analysis of the historical data available from the deposits, and over 85% of the resource sits in the Measured and Indicated categories.
The updated JORC compliant mineral resource inventory, using a 40g/t silver cut-off grade, is summarised in Table 1 below.
Table 1: Texas Silver Project, JORC Compliant Mineral Resources - March 2010
| Deposit | Resource Category | Tonnes | Grade (g/t Ag) | Contained Silver (oz) |
| Twin Hills | Measured | 1,762,000 | 86 | 4,868,000 |
| Indicated | 1,466,000 | 79 | 3,722,000 | |
| Inferred | 614,000 | 81 | 1,602,000 | |
| TOTAL: | 3,842,000 | 83 | 10,192,000 | |
| Mount Gunyan | Indicated | 1,756,000 | 76 | 4,267,000 |
| Inferred: | 350,000 | 58 | 650,000 | |
| TOTAL: | 2,106,000 | 73 | 4,917,000 | |
| TOTAL | ALL CATEGORIES | 5,948,000 | 79 | 15,109,000 |
| Note: | Specific comment regarding the method of calculation for the Resource and the role of external consultants is included in Appendix 1. |
The new resource models include internal dilution where geologically appropriate and are reported above 40g/t Ag to highlight the component of the model that is likely to be economic given today's cost environment and metallurgical knowledge.
Significantly, based on contained silver, 85% of both the Twin Hills and Mt Gunyan Mineral Resource inventories are in the Measured and Indicated category, meaning that a total of 4.98Mt @ 80g/t Ag for 12.8 million ounces of contained silver is available for assessment for conversion to Ore Reserves.
Importantly, the updated Mineral Resource inventory includes the Mt Gunyan deposit, located approximately 4km by road from the east of Twin Hills Mine, and incorporates the results of the 2008 drilling program which successfully in-filled and expanded the mineralised zone. Work on mine planning and metallurgical studies together with economic modelling for Mt Gunyan will commence immediately on completion of the assessment of Twin Hills.
The Mt Gunyan deposit has the potential to provide additional feedstock and increase the life and throughput of the Twin Hills operation. The mineralisation is relatively close to surface and on the sides of the hill which should be beneficial in relation to the stripping ratio and hence mining costs when the pit optimisations are undertaken.
