Metals X Launches Reset Plan for Nifty Copper Operation

Metals X announced that it is launching a reset plan for its Nifty copper project after not seeing the success it had hoped for.

After not seeing the operational success it had hoped for, Metals X (ASX:MLX,OTC Pink:MLXEF) announced Wednesday (May 1) that it is launching a “reset plan” for its Nifty copper operation.

When the company acquired the asset in 2016, Nifty showed potential through a notable resource, previously installed infrastructure and “significant geological upside.” However, according to Metals X, the asset has underperformed due to poor execution, inadequate planning and legacy issues.

The company has reviewed the asset over the last several months, leading to a two phase reset plan to increase production and resolve the asset’s former issues. Phase 1, which is already ongoing, has a focus on mine planning, developing new production areas and improving underground infrastructure.

The first phase’s goal is a throughput rate of 2 million tonnes per year (Mtpa), docketed to be achieved in the March 2020 quarter; success here would see an annual production rate of 28,000 tonnes per annum (tpa) of copper concentrate.

Later on, Phase 2 will target a 2.5 Mtpa throughput rate during the March 2021 quarter, which would lead to the production of 35,000 tpa of copper concentrate.

“Unfortunately, performance at Nifty has suffered from a number of legacy issues as well as a lack of planning and focus, poor decision making and poor execution. The Metals X Board acknowledges this. We now have the right team and the right plan in place to unlock Nifty’s considerable value,” Metals X Managing Director Damien Marantelli said in a statement.

“This plan has been fully supported by the Metals X Board, which has worked closely with management on the development of the key work streams and milestones. The entire Metals X team is confident this plan is achievable and will provide long-term value.”

The reset plan is expected to cost $27 million over three years to enable an effective expansion; the company intends to fund the plan through a mix of cash flow and debt facilities.

According to Metals X, Nifty’s geologic potential was one of the driving reasons for the asset’s initial acquisition. To date, 70,000 meters of resource definition drilling have been taken on, with the measured, indicated and inferred resource being increased by 15 percent to 41.5 million tonnes (Mt) at 1.5 percent copper for 622,000 tonnes of copper.

The drilling also led to a 144 percent increase in proven and probable reserves, reaching 13.9 Mt at 1.71 percent copper for 237,500 tonnes of copper. Nifty’s resource estimate is currently being updated to include drilling completed in 2018, with a release planned for mid-2019.

Metals X dropped 1.79 percent on Wednesday on the ASX, ending the day of trading at AU$0.27.

On the London Metal Exchange, copper was trading at US$6,441 per tonne as of April 30.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

Torian Resources Limited Significant Gold Results from Surface at Mt Stirling

Perth, Australia (ABN Newswire) – Torian Resources Ltd (ASX:TNR) is pleased to advise that recent drilling results continue to extend the Mt Stirling Gold System over ~1.1km of Strike, ~300m at depth, and it remains open in multiple directions.


– The interpreted strike of the Mt Stirling gold system exceeds 1.160km with Mt Stirling Main Zone; Hanging Wall and Viserion lodes all remaining open along strike and down-dip.

Keep reading... Show less

eMetals Limited Updates Shareholders On Exploration – April 12, 2021

eMetals Limited (ASX:EMT) (eMetals or Company) is pleased to update shareholders on exploration activities which have commenced across the Company’s projects.


Keep reading... Show less

Discovery Harbour Provides Newcrest’s Planned Program for Fortuity 89, Nevada

Discovery Harbour Resources Corp. (TSXV: DHR) (OTC Pink: DCHRF) (FSE: 4GW) (the “Company” or “Discovery Harbour”) is pleased to announce that Newcrest Resources Inc., a wholly owned subsidiary of Newcrest Mining Limited (“Newcrest”), has provided the details of its planned program for the Fortuity 89 epithermal gold property in Nevada.

The Fortuity 89 property covers very limited outcrop surrounded by a large covered area. The outcrop and interpreted geology are prospective for concealed low sulphidation epithermal gold mineralization below shallow unconsolidated alluvial gravels. Newcrest’s planned activities include a geophysical program encompassing a 675 line kilometre drone airborne magnetic survey, a 250 station ground gravity survey and a 45 line kilometre audio band magnetotellurics (AMT) resistivity survey. It is intended that geologic and alteration sampling and mapping will also be undertaken with a soil geochemical sampling program. The intended outcome of this program is to identify potential drill targets for testing this calendar year.

Keep reading... Show less

Blackdome-Elizabeth Gold Project 2021 Exploration Plan and Update

Tempus Resources Ltd. (“Tempus” or “the Company”) (ASX:TMR)(TSXV:TMRR) is pleased to provide an update on the exploration plan for the upcoming field season at the Blackdome-Elizabeth Gold Project, located in British Columbia, Canada

The 2021 exploration program at Elizabeth and Blackdome is fully permitted and on schedule to commence at the end of Q2, 2021. The program will consist of 7,500 metres of down plunge and along strike diamond drilling at Elizabeth to expand the known gold mineralisation, in parallel with detailed alteration and mapping studies at Blackdome in support of future resource expansion drilling.

Keep reading... Show less

Rio Tinto reaches agreement with Turquoise Hill Resources on financing plan for Oyu Tolgoi

Rio Tinto has entered into a binding Heads of Agreement (HoA) with Turquoise Hill Resources (TRQ) for an updated funding plan (the “Funding Plan”) for the completion of the Oyu Tolgoi (OT) Underground Project in Mongolia. The Funding Plan addresses the estimated remaining known funding requirement of approximately $2.3 billion 1 , building on and replacing the arrangements established in the Memorandum of Understanding that Rio Tinto and TRQ previously entered into on 9 September, 2020.

Under the HoA, subject to securing approval by OT LLC and any required support from the Government of Mongolia, and subject to timing, availability, and terms and conditions being acceptable to both parties, Rio Tinto and TRQ will:

Keep reading... Show less

Top News

Related News