announcment - resource upgrade!

ALCYONE INCREASES TWIN HILLS ORE RESERVE & MINE LIFE
HIGHLIGHTS (summary)

TWIN HILLS
- Re-optimised Twin Hills mine plan delivers increase in Ore Reserves of 1.42Moz silver (+30%)
- New Ore Reserve estimate of 5.64Moz of recoverable silver (4Mt @ 64g/t Ag)
- Mine life increased from 3 years to between 4 and 5 years (including current stockpiles)
- Expected cash operating cost of approximately A$15/oz
- Strip Ratio (Waste : Ore) reduced from 3.9:1 to 1.65:1
- Plant construction on target for full-scale commercial silver extraction in September Quarter of
2011
- Leaching of existing heaps occurring at expected rate with first Merrill Crowe silver extraction
expected later this month
MT GUNYAN
- Increase in Mt Gunyan JORC compliant Mineral Resource estimate to 2.3Mt @ 69g/t Ag and 0.08g/t
Au, for 5.2Moz of silver and 6,200oz of gold
- Potential to add to mine life as a key second source of feedstock for Twin Hills processing facility
- Scoping Study underway
Alcyone Resources Limited (ASX: AYN; ?Alcyone? or ?the Company?) is pleased to report an updated Ore Reserve
estimate for the Twin Hills deposit, part of the Texas Silver & Polymetallic Project in south-east Queensland, where the
Company commenced early silver production last month.
Alcyone recently undertook a re-optimisation of its Mineral Resource inventory in light of the strength in the silver price,
with spot silver currently trading above A$30/oz and in recent weeks trading as high as +A$47/oz. The Company
completed pit optimisations for the Twin Hills deposit at varying prices, from A$19.85/oz to A$35/oz and has calculated
Ore Reserve estimates based on a silver price of A$19.85/oz and A$25/oz.