Ernest Henry mine life extended after big resource upgrade

The life of one of the region’s biggest and deepest mines west of Townsville has been extended after drilling revealed more resources. See for how long.

The mine life of one of region’s biggest and deepest mines has been extended to beyond 2031 after drilling revealed it contains a lot more copper and gold.

Evolution Mining reported the results of an increase in the mineral resources of Ernest Henry mine this week, while decisions on a planned $350m-plus extension await a pre-feasibility study due to be released later this year.

The mine, between Cloncurry and Mount Isa, is 750km west of Townsville and employs 600 people in a mix of residential, fly in fly out and drive in drive out.

The copper resource was increased 28 per cent to 1.13 million tonnes and for gold by 24 per cent to 2.07 million ounces — which, combined, at today’s record prices would be worth some $19.3bn.

In a statement, Evolution chairman Jake Klein said the new estimate highlighted the exciting extension potential they see at the operation.

“The result reinforces Ernest Henry as a premier copper/gold asset that has generated exceptional shareholder returns. As the mineral system remains open at depth there is potential for further resource additions with the completion of further drilling,” Mr Klein said.

The new estimate includes information from 30km of drilling.

While another five years of mine life had been estimated, Evolution now says the mine extension provides a pathway to a mine life of 2031 plus.

The new mineral resource estimate is being used to inform a Mine Extension Pre-Feasibility Study due for completion by December.

Two surface rigs are continuing infill drilling below a 1200m Reduced Level for further resource classification and to delineate extensions of mineralisation.

Future underground drilling will link to extending the decline and establishing better drill positions to intersect extensions of the ore body at depth.

Commercial production started from an open cut pit in 1998, while Glencore, which developed a new 1km deep underground shaft in 2014, also tried extracting magnetite from the ore before suspending that operation in 2013.

Evolution completed a $1bn deal to take full ownership of Ernest Henry earlier this year when it also took operational control from Glencore, while Glencore continues to treat and refine the mine’s concentrate at its Mount Isa smelter and Townsville refinery.

Originally published as Ernest Henry mine life extended after big resource upgrade