Projects

JORC Resource

 

MINERAL RESOURCE INVENTORY

 

Table 1: Twin Hills Mineral Resource Estimate, reported to Feb 2012 mining surface and above a 26.5g/t Ag cut-off

 

Classification

Tonnes

Grade
(g/t Ag)

Contained Silver
(Moz)

Measured2,278,00081.35.960
Indicated6,267,00043.98.865
Inferred931,00052.61.575
TOTAL9,476,00053.816.400

 

The mineral resource update has been estimated by Alcyone Resources Ltd using the same techniques as adopted for the Feb 2010 estimate, these being:
  • the drill hole dataset composited within the mineralisation constraints to 2m down hole
  • a combined geology/mineralisation/structural model developed by Shear Exploration from re-logging existing diamond core and reinterpretation of the percussion drill logs
  • Ag grade continuity statistics (as generated for the previous estimate by Cube Consulting but updated for the additional drilling and changed constraints) which highlighted search orientations and ranges for two major domains within the deposit
  • Ag grade estimated using ordinary kriging with appropriate top-cuts applied to the input data
  • A reporting cut-off selected (26.5g/t Ag) to reflect current economic criteria relating to “ore reserve” definition.

The techniques adopted and the reporting comply with the 2004 JORC code for reporting mineral resource estimates.

 

Table 2: Mt Gunyan In Situ Mineral Resource, reported >=40g/t Ag

ClassificationTonnesSilver Grade
(g/t Ag)
Gold Grade
(g/t Au)
Measured242,000690.16
Indicated1,777,000690.08
Sub-total2,018,000690.09
Inferred329,000690.05
TOTAL2,347,000690.08

 

Tonnes and grade have been rounded to the nearest 1000 for tonnes and whole units for Ag. Cut-off grade of 40g/t Ag.


The mineral resource has been estimated based on:

  • Mineralisation determined by a combination of geology, structure and a nominal Ag boundary of 40g/t.
  • The mineralisation occurs in two separate geographic Domains
  • Validated drill hole data set composited within the mineralisation interpretation to 2m down hole
  • Grade continuity statistics and geo-statistical assessment utilised to determine search orientation and distance by Domain

 

Ag and Au grade estimated separately by inverse distance methods with restrictions on higher grades applied

 

ORE RESERVES INVENTORY

 

Table 3: Twin Hills Ore Reserve Estimate

 

Silver PriceReserve ClassificationTonnes
(Mt)
Silver Grade
(g/t Ag)
Recovered Silver
(Moz)
Strip Ratio
Waste:Ore
A$19.85/ozProven & Probable2.325814.1252.17:1
A$25.00/ozProven & Probable4.106645.6371.65:1


The ore resources stated in Table 3 are based on the optimisation of the February 2010 Twin Hills mineral resource estimate and are reported to the Dec 2009 Surface.