AYN has just released a massively positive announcement about the commissioning of their silver mine. So far it is "performing beyond our expectations for this stage of commissioning."
Here are some extracts from the ASX report:
"KEY POINTS
- Wet commissioning of upgraded Twin Hills process facility on track for end September
- Crushing circuit and plant already nearing nameplate capacity of 150tph (~1Mtpa)
- Crushing plant product sizing 100% less than 4.0 mm, as per design
- New Merrill Crowe silver extraction circuit commissioned and already operating at capacity
- Over 210,000oz of silver produced to date from existing heap leach pads � exceeds 80% of targeted production from existing heap leach pads
- Average silver sale price achieved to date is A$36.85/oz
- Mining scheduled to commence in late September to drive production ramp up to annualised rate of 1.5-2.0Moz per annum by year end
- Exploration and grade control drilling underway with RAB and RC rigs operating at key silver and base metal targets
Alcyone Resources Limited ... is pleased to advise that it is on track to ramp-up silver production at its 100%-owned Texas Silver & Polymetallic Project in south-east Queensland to a targeted annualised rate of 1.5 - 2.0 million ounces per annum following excellent progress in the first four weeks of wet commissioning of the upgraded Twin Hills processing facility.
Wet commissioning of the upgraded crushing circuit and heap leach processing facility commenced on the 12th of August and the plant, at current throughput of 140tph, is already operating at close to its nameplate capacity of 150 tonnes per hour (tph), which equates to an annualised throughput rate of 1 million tonnes per annum (Mtpa).
The crushing facility is performing well with 100 per cent of material passing 4mm - one of the key parameters to achieving design leach rates.
The commercial-scale Merrill Crowe circuit, which is used to extract the silver from solution, replaced the pilot scale plant on the 24th of August. The circuit is currently running at nameplate capacity of 200 cubic metres per hour, resulting in a significant boost to bullion production. The automation package, which is expected to be activated within the next 10 days, is expected to further enhance overall process productivity. The overall silver recovery circuit is currently achieving recoveries from solution of more than 96 per cent, compared with the targeted level, based on previous testwork, of 95 per cent.......
Because of the excellent progress to date with the plant commissioning, Alcyone has decided to bring forward the commencement of mining in the Twin Hills open pit to late September. This will provide a regular ore feed to the plant and enable the Company to ramp up production to the targeted annualised rate of 1.5-2.0 million ounces per annum by year end.
Based on the positive results delivered so far, the company has refocussed its efforts on exploration across its highly prospective 257 sq km tenement package at Texas, with two drill rigs already operational on site....
Alcyone Resources' Managing Director, Andrew King, said he was delighted with the progress that has already been made with the commissioning work, which lays the foundations for the transition to commercial silver production at the Texas Project.
"The plant is performing beyond our expectations for this stage of commissioning and, when coupled with the production of over 210,000 ounces of silver to date, represents another key milestone towards achieving full-scale commercial silver production at the Texas Project," Mr King said.
"There couldn't be a better time to be starting a silver mine, with silver prices continuing to strengthen - providing us with an exceptional cash operating margin," he continued. "With our life-of-mine unit cash operating costs forecast at A$15/oz, this equates to a cash operating margin at the current spot price of around $26/oz - a very healthy proposition for a company entering a production ramp-up phase.
"We are looking forward to the next milestones, which include the start of mining and ramp-up to full commercial production at an annualised production rate of 1.5-2.0Moz per annum by the end of this year," Mr King added."
My comments:
This is a brilliant announcement imo. Commissioning is going so well that AYN is recommmencing exploration drilling!! Further exploration success combined with very profitable silver mining will imo a be a key driver of the AYN share price, as investors start to factor in a significantly larger mining operation.
AYN Price at posting:
6.0¢ Sentiment: Hold Disclosure: Held
