Miners to conduct creek study
MINING company Anchor Resources is planning to conduct a scoping study of antimony deposits at Wild Cattle Creek, west of Coffs Harbour.
The ASX-listed company hopes to mine the area’s antimony resource and capitalise on the rising price offered for the metalloid on the international market given the resource in China has been in short supply.
Anchor Resources has told its shareholders it’s investigating the area with the potential of mining after successful resource drilling.
The company’s immediate program will focus on 3D modelling of the deposit to estimate the size of the resource.
Anchor Resources managing director Trevor Woolfe said additional metallurgical test work was to follow.
“Significant encouragement from the latest round of drilling at Wild Cattle Creek has led us to propose a scoping study for the second half of 2010,” Mr Woolfe said.
“While the prime focus of the study will be the robust core of breccia-hosted antimony mineralisation, we will also evaluate data indicating potential economic upside from peripheral “stringer” mineralisation that incorporates tungsten and gold as well as antimony,” he added.
Anchor is currently finalising proposals from specialist consultants to undertake the scoping study. While elements of this work will commence in conjunction with the modelling and resource estimation, the bulk of the scoping study will follow completion of the resource upgrade and results of metallurgical testing.
Anchor anticipates the scoping study will be completed later this year.
Anchor holds the sole ownership of the Bielsdown Project (EL 6388), located 40km west of Coffs Harbour, which includes the old Wild Cattle Creek antimony mine and Jezebel prospect.
Following its 2009 drill campaign, Anchor upgraded the JORC compliant resource estimate for the Wild Cattle Creek antimony deposit.
The antimony price has surged to record levels over recent months as traders report a shortage of available material from China, the largest producing country.
Prices leapt from around US$6,400/t in January to US$9,500/t in May, with more recent reports of prices stabilising around US$8,400/t, equivalent to US$3.80/lb.