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Alcyone Resources starts silver production at Twin Hills from silver rich heaps
Monday, April 11, 2011
Alcyone Resources starts silver production at Twin Hills from silver rich heaps
Alcyone Resources (ASX: AYN) has kicked off silver production at the Texas Silver and Polymetallic Project in south-east Queensland, with the re-irrigation of existing silver-rich heaps at the Twin Hills mine.
Leach pads at Twin Hills hold 400,000 tonnes of leachable material available on the heaps with an average estimated grade of 45 grams per tonne silver.
Importantly, metallurgical tests indicate 45% of the remaining silver can be extracted.
The company expects the first silver bars to go out in May with the first cash flows from production expected in the June 2011 quarter, which is perfect timing as spot silver continues its stellar run past US$40 an ounce.
Andrew King, managing director, said “With our unit cash operating costs forecast at approximately A$14/oz, the Twin Hills operation should be capable of generating an exceptionally strong cash margin.”
