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http://www.miningweekly.com/article/alcyone-commissions-new-silver-bullion-circuit-at-qld-mine-2011-07-27



By: Esmarie Swanepoel

27th July 2011

Updated 1 hour 42 minutes ago


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PERTH (miningweekly.com) − ASX-listed metals producer Alcyone Resources has poured its first silver bullion on site at the Texas silver and polymetallic project, in Queensland, after producing 100 000 oz since re-irrigating the existing silver-rich heaps at the Twin Hills mine, in April.

The company reported that the first silver-rich solution from the leach pads was processed using the pilot-scale Merril Crow circuit at site, confirming the viability of the process flow sheet.

The first batches of silver-rich precipitate had to be treated off site to produce silver bullion for final refining, prior to the installation of the company?s own bullion circuit at site.

The miner said on Wednesday that the installation of the new bullion circuit was completed last week, with the circuit now fully commissioned.

Silver production would now be ramped up significantly, with silver extraction rates from the old heaps continuing to improve, the company said.

The new circuit had the capacity to produce some two-million ounces of silver a year, which was sufficient to accommodate the forecasted output from the Twin Hills mine as the upgraded processing facility was brought online during the current quarter.

MD Andrew King said that the Twin Hills processing plant was currently in its final stages of construction, with dry commissioning already under way, and wet commissioning expected to start shortly.

?Construction has entered its final phase and we are on track to start wet commissioning of the processing facility shortly. The earth moving fleet is on site and being readied for start of full scale mining operations.?

King said that the next two months would be very busy ones for Alcyone, as the company started extracting and processing the openpit ore and ramping up all aspects of the operation.

?We should see progressive uplift in sliver bullion production towards an annualised rate of between one-million and 1.5-million ounces by the beginning of the December quarter, and then towards full long-term production thereafter.?


Edited by: Mariaan Webb