AIC MINES LIMITED AIC Mines Limited announced that its Board of Directors has approved the commencement of development for the Jericho Copper Mine via an underground link drive directly from the Eloise decline. Recently completed mining studies comparing the two scenarios for accessing the Jericho deposit - an underground link drive from Eloise versus a covered boxcut and portal at Jericho - have clearly shown that an underground link drive is the better choice. The link drive will take off from the Eloise decline at 125m below surface and involves a 3.0 kilometre drive.
It is expected to be completed over approximately 24 months and to reach first development ore in June 2026. At about its halfway point, the link drive will pass within 400m of the Swagman discovery allowing for resource definition drilling to be completed and possible early development of this lens. The mining team at Eloise have immediately commenced preparations for the link drive with new ground support installed and geotechnical drilling underway.
The Jericho copper deposit is located 4 kilometres south of the Eloise processing plant and has similar geology, mineralisation and metallurgy to Eloise. Development of the Jericho mine and expansion of the Eloise processing plant will lift production to over 20,000tpa copper and 7,500ozpa gold. It will reduce operating costs through economies of scale and de-risk production by increasing the number of available ore sources.
Development of Jericho transforms Eloise into a cornerstone asset. Jericho mining optimisation studies have shown that accessing the Jericho deposit via an underground link drive from the Eloise decline will reduce initial schedule risk and also longer-term operational risks without a material change to the capital or operating costs as compared to a boxcut, portal and overland haulage scenario. The link drive has a number of advantages over the original boxcut, portal and overland haulage scenario: Wet-season flood protection.
No soft or oxidised rock excavation. Immediately in competent rock. Lower mine operating cost due to materials handling optimisation.
No requirement to change ROM pad for semi-trailer access. Allows for rapid development of any future discoveries along the 3.0km of prospective strike - such as the Swagman discovery. Lower potential impact on environment and local stakeholders - such as pastoral landowners, McKinlay Shire Council and the Traditional Owners of the land.
The link drive will take off from the 1065 level on the Eloise decline (125m below surface) and involve a 3.0 kilometre drive plus 600m of development for stockpiles to be completed over approximately 24 months. The drive is expected to reach first development ore in June 2026 and then ramp-up to a full ore-production rate of approximately 600,000tpa subject to timely receipt of environmental approvals including an amendment to the Eloise Environmental Authority and the Jericho Site Specific Environmental Authority. At about its halfway point, the link drive will pass within 400m of the Swagman discovery allowing for resource definition drilling to be completed and possible early development of this lens.
Access to the northern end of the Jericho project first, as compared to central access under the boxcut scenario, means that additional drilling to extend the Mineral Resource to the north is now important. There is sufficient time to complete this drilling (from surface) ahead of the link drive development. Geotechnical conditions will be managed with in-front cover drilling.
This drilling has commenced. Given the extensive underground mining experience that the Eloise mining time has, AIC Mines does not expect to encounter any ground conditions that it has not successfully dealt with in the past. Capital costs for Jericho mine development, subject to finalisation of the underground development contract, are estimated at $35 million over 24 months for underground development and $15M over 24 months for associated ventilation shafts and fans.
AIC Mines has recently completed a tender process for a combined Eloise and Jericho underground mine development work and has awarded preferred tender status to PYBAR Mining Services, the incumbent mine development contractor at Eloise. The contract is expected to be awarded in June 2024. Procurement of the requisite capital equipment has commenced, including new underground refuge chambers and secondary vent fans.
