Aeris Resources to develop Murrawombie copper mine in Australia

20 March 2016 (Last Updated March 20th, 2016 18:30)

Australian-based copper producer Aeris Resources is all set to develop its Murrawombie underground copper mine in New South Wales.

Australian-based copper producer Aeris Resources is all set to develop its Murrawombie underground copper mine in New South Wales.

The decision to develop the mine, located at the company's existing Tritton operations near Nyngan, follows completion of a positive feasibility study for the project.

Aeris executive chairman Andre Labuschagne said that the production from Murrawombie will replace existing production from the Larsens and North East mines, which is slated for completion in July 2016.

"Preliminary site works have commenced. With the portal and 600m of the decline already established in 2007, we expect Murrawombie will deliver first ore as early as the end of June.

"Murrawombie will allow us to increase throughput of our processing plant to a rate of about 1.8Mtpa annum in FY17 and beyond."

"Combined with existing ore being mined at Tritton, Murrawombie will allow us to increase throughput of our processing plant to a rate of about 1.8Mtpa annum in FY17 and beyond, which will deliver considerable production efficiencies at Tritton."

At present, the copper mine has an ore reserve of 3.3 million tonnes with an average grade of 1.3% copper.

Aeris is currently revising the mineral resource and ore reserves estimates of the mine.

Capital expenditure to develop the first stage lens over a period of 18 months as at 30 June 2015 is projected to be $6.4m for infrastructure and equipment.

The company plans $8.5m for capital development.

The Murrawombie mine was originally developed in 2007 and placed in care and maintenance during 2008 at the time of the global financial crisis.