19/07/2016 - 14:31

Altona steps closer on Cloncurry

19/07/2016 - 14:31

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West Perth resources hopeful Altona Mining has received amended environmental authority for its Cloncurry copper project in Queensland, incorporating a new deposit and other changes into the mine plan.

Altona steps closer on Cloncurry
The Little Eva deposit in the Cloncurry project.

West Perth resources hopeful Altona Mining has received amended environmental authority for its Cloncurry copper project in Queensland, incorporating a new deposit and other changes into the mine plan.

The project, which would be near Mt Isa, could be undertaken in a joint venture with Chinese company Sichuan Railway Investment Group, valued at about $US240 million, with today’s approval a precondition of that agreement proceeding.

The additional deposit, Turkey Creek, will form part of the Little Eva mining operation, with a new open pit mine, waste rock storage and a relocated tailings dam.

Inclusion of Turkey Creek will increase throughput over the length of the project and mine life, according to Altona.

The Little Eva project is now permitted for a minimum mine life of 11 years, Altona said, with 38,800 tonnes of copper and 17,200 ounces of gold annual production.

It follows a move in June to finalise the Sichuan agreement, in which the Chinese investor would contribute $US213.5 million cash to buy 66 per cent of a joint venture company.

Altona would also chip in $US25 million.

The agreement hinged on satisfaction of regulatory approvals by October.

Altona also holds a potential neighbouring project, Roseby South.

Altona was up 3 per cent to 15 cents per share at the time of writing, while copper is trading at about $US2.24 per pound, a fall of around 50 per cent in five years.

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