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.
AYN Price at posting:
7.0¢ Sentiment: Buy Disclosure: Held