Exciting times for silver explorer
Wednesday October 21, 2009
A new mine producing around one million tonnes per annum of silver is expected to have a mine life of at least five years according to exploration company Cobar Consolidated Resources.
The company held its annual general meeting last week where shareholders were told that a feasibility study at the Wonawinta site, south of Cobar, continues to return positive results.
The company’s managing director Ian Lawrence gave a presentation on the Wonawinta project at the meeting, saying there is currently an indicated 30million ounces of silver with an estimated 20million more at the site.
Mr Lawrence explained that the company is currently reviewing lower cost mining methods for the site, and has already had expressions of interest from 12 contractors for various works on the site.
The company is estimating a total investment requirement to get the project up and running of $25 to $30million, with $21million for processing plant.
Company secretary Trevor Shard also spoke at the meeting, saying the company continues to move ahead with its plans.
“Despite the woes caused by the global financial crisis, these are very good times for a company hoping to develop a silver mine.
“The silver price in Australian dollar terms has increased from $14.81 in July 2007 to $19.60 in recent days, an increase of more than 30 per cent.
He said while work is currently focusing on the Wonawinta project the company also has a number of other promising prospects.
“We remain confident in the potential of our exploration projects to the north of Wonawinta, particularly the fault corridors which link Wonawinta with the Gundaroo and Jackermaroo prospects.
“Activity on these projects will remain at low levels for the time being while we focus our resources on a successful development at Wonawinta,” Mr Shard said.
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