Alcyone Seeks to Double Life of Mount Gunyan Deposit in Queensland

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Researched by Industrial Info Resources Australia (Perth, Australia)--Alcyone Resources Limited (ASX:AYN) (Perth, Western Australia) is a growing company that owns the Twin Hill silver mine and processing plant and the Mount Gunyan deposit. Recently, Alcyone decided to commence an exploration program at the Mount Gunyan deposit to ensure a new supply before the Twin Hill mine reaches the end of its viable lifespan. This new exploration project aims to double the life of the Mount Gunyan deposit and maximize shareholder returns.

The Twin Hill silver mine and processing plant is located approximately 142 miles (230 kilometers) southwest of Brisbane, near the town of Texas, Queensland. The mine has operated since March 2007, with an annual production rate of 500,000 ounces of silver. Alcyone acquired the Twin Hill mine from the previous owner, Macmin Silver Limited, in November 2009. After the acquisition, Alcyone redeveloped the processing plant and increased the processing capacity to 1.5 metric million tons per year. The current annual production of the Twin Hill mine is between 1.2 million and 1.5 million ounces of silver.

Based on the company's geological estimation, the remaining lifespan for the Twin Hill silver mine is eight years, reaching the end of its lifespan in 2012. Therefore, it is important for Alcyone to search for new opportunities before facing supply shortages.

The Mount Gunyan deposit is approximately two miles (4.5 kilometers) northeast of the Twin Hill mine. The current estimated resources at the Mount Gunyan deposit are 3.9 million tons of silver. Alcyone aims to extend the Mount Gunyan mine life to 14 years.

The Mount Gunyan project consists of an aboveground, open-pit mine with supporting mining equipment. Based on the early scoping study, the Mount Gunyan deposit is estimated to produce between 900,000 and 1.2 metric million tons of silver ore per year. The silver ore will be transported either via haul road or overland conveyor system to the existing Twin Hill mine's processing plant. According to Alcyone Resources Limited's geology manager, the outcome of the final decision for the Mount Gunyan project is expected in two years.

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