The Texas Silver & Polymetallic Project has recently been expanded from a 260 to a 1,100 square kilometre portfolio of tenements located near the town of Texas, approximately three hours south-west of Brisbane in south-east Queensland.
Alcyone commenced silver production from the Texas Project in July 2011, and is currently ramping up to an initial annualised production level of 1.2-1.5Moz per annum. Alcyone is on track to achieve steady-state commercial production by Q4 2012.
In addition to the operating Twin Hills Silver Mine, the Texas Project includes a portfolio of advanced silver and polymetallic base metal exploration targets. These include the Mount Gunyan deposit, which is being evaluated as a potential source of near-term ore feed for the Twin Hills mining operation.
In parallel with ramping up production at Twin Hills, Alcyone has embarked on an exciting new growth phase with aggressive exploration programs aiming to establish a +10 year mine life and targeting new silver resources of between 30 and 50 million ounces with base metal discoveries.
In April 2012 Alcyone signed an agreement to acquire a large 900 sq km tenement package from Navaho Gold Limited that lies adjacent to the Texas Project. The acquisition will more than quadruple Alcyone’s land holding in the region. The agreement is subject to technical and commercial due diligence.
The new tenements cover ground to the north and east of the Texas Project, in an area where Alcyone’s regional geological model indicates strong potential for both silver and base metals mineralisation. The Company intends to commence exploration within these new tenements as soon as possible.