FAQs

Q. Why does it take so long to release drilling results?

A. The time it takes to release drilling results is dependant on the following factors:

Delays in arrival of drilling contractor
Slow or difficult drilling conditions
Weather conditions
Freight time - It takes at least 1 week to deliver samples from our Koongie Project near Halls Creek to laboratories in Perth.
Laboratory time - High demand for laboratory services has seen turnaround time extended to 4-8 weeks depending on assay methodology.
Confirmation and checking - All anomalous assays received by AAR are checked and confirmed prior to market release. This could involve reassay of these intervals.

Q. Why is there so much emphasis on the Koongie Metallurgy?

A. It is not sufficient to have a defined resource. Metallurgy along with orebody shape and geotechnical issues will determine which parts of the resource can be mined. Utimately this affects mine planning. Metallurgical results also affect the the design of the plant.

Metallugy ultimately determines the final concentrate product. Our testwork has determined that both sulphide concentrates from Onedin and Sandiego could be considered to be “clean” and that, where some deleterious elements were present, the amounts were only slightly above the levels at which penalties might be imposed by smelters.

Q. Why has the metallurgical testwork taken longer than expected?

A. All massive sulphide deposits have complex metallurgy and are unique metallurgically. The basic flotation methodologies employed on all sulphide ores are similar however the details of crushing methodology, grind size, added chemicals and residence times are very sensitive to variations in the ore type. Therefore optimisation of the metallurgy has required a large number of tests. We also have a number of different ore types which requires different metallugical treatment to acheive optimal recovery.

Another factor for the slow metallurgy has been the slow turn around time by assay laboratories. Assay laboratories have been placed under enourmous preassure due to a substantial increase in exploration Australia wide. Our metallurgical testwork has been sequential. Results of the previous tests have determined the direction of subsequent tests.

Q. Why has there been no information released on the Pre- Feasibility?

A. Metallurgy impacts all aspects of the pre-feasibility study. Hence the pace of the metallurgical testwork partly dictates the pace of the Pre-Feasibility. However the company has released some information about the prefesibility work:

JORC Code resources announced. Potential to increase resouces.
Preliminary assessment focussing on Mining Onedin by open cut and Sandiego by underground methodologies concluded that at current prices mining at Koongie could provide attractive returns
Stand alone milling options examined as well as toll treatment at nearby plants.
Production 500,000tpa producing 60,000t of zinc and copper concentrates. Batch treatment of various ore types.
Transport of concentrates through Wyndham
Initial studies focused on mining sulphide only. Testwork from Sandiego transition ore is positive
Bill Holly continues to manage pre-feasibility work
Deailed photography and site survey completed
Flaura and Fauna Survey (required for permitting) commenced
Completion of Heritage and Archaeological Survey
Commencement of detailed plan of decline and stoping for Sandiego
Preliminary design of flotation circuit completed
Re-evaluation of Onedin oxide resource
Whittle optimisation of Onedin Open pit option
Geotechnical studies underway
Drilling specifically for feasibility work including water bores, metallurgical holes and geotechnical holes commenced.