Golden Cross Resources (ASX: GCR) has intersected promising grades of copper and gold at the Copper Hill project in central New South Wales, extending the resource envelopes at Wattle Hill and Buckley’s Hill.
Importantly, final assays from all holes will be included in the new resource estimate expected by June 10. The Copper Hill project resource contains 535,000 tonnes of copper and 1.47million ounces of gold.
The project is ideal for open pit mining with outcropping mineralisation and has access to high quality existing infrastructure.
Metallurgical studies, based on a new strategy, are being undertaken to maximise copper and gold recoveries.
Completion of a Definitive Feasibility Study (DFS) is planned for the end of 2011 with a Bankable Feasibility Study, acceptable to Chinese or other financiers, now scheduled for mid-2012.
China United Mining Investment Corporation (CUMIC), a privately owned Beijing-based investment company specialising in mineral and mining investment, holds about 32% of Golden Cross's issued capital.
When the DFS is complete Golden Cross will have more certainty regarding the potential for the project to become an operating mine.
Drilling is continuing with plans to test for major depth extensions under extensive, higher grade zones beneath the main Copper Hill deposit.
Previous intersections in this area include 54 metres at 0.79% copper and 2.35 g/t gold and 128 metres at 0.48% copper and 0.56 g/t gold.
Step-out drilling to the north of Copper Hill has commenced with deeper drilling at Wattle Hill to follow-up zones of +2% copper intersected previously. Extensions of the recently reported oxide resource drilling program are also planned.