I ran some rough numbers on the cross-section provided. The majority of the ore could be mined using open pit methods. A pit to 450m would comprise removal of approximately 66,000m3 or ore and 330,000 m3 of waste per m of strike. This results in a competitive strip ratio of 1:6. At say 4T/m3 the deposit would comprise 0.25MT of ore per m of strike so 400m of strike would be required to achieve 100MT (assuming other sections have similar continuity). I think the average grades would be around 0.8 to 0.9 % Cu and 0.4 to 0.5 g/T of Au.
While early indications are promising, REX will have to demonstrate continuity of the ore bodies over at least 500m along strike. Shallower mineralisation is also encouraging as it would significantly reduce mining costs and reduce the capital expenditure required for prestrip. At Prominent Hill, which has 100m+ cover, overburden removal accounted for around 300M in capital.
One thing is clear, if Hillside gets up, it will be a large scale operation.
PS Im not a mining engineer so DYOR
RXM Price at posting:
$1.67 Sentiment: None Disclosure: Not Held
