Aeris Resources delivers on copper and gold production guidance, gold costs beat guidance

Aeris Resources Ltd (ASX:AIS) has capped off a year described as “transformational” by meeting production guidance at its Tritton Copper Operations and Cracow Gold Operation with costs at the latter better than the guidance. The company’s Tritton Copper Operation’s FY2021 copper production of 22,987 tonnes at all-in sustaining cost (AISC) of $3.70 per pound was in line with revised guidance of 22,500 tonnes to 23,500 tonnes while copper production for the June quarter of 5,828 tonnes at AISC of $4.68 per pound increased by 11%, compared to the previous quarter. The Cracow Gold operation’s June quarter gold production was 19,889 ounces at AISC of $1,568 per ounce and the FY2021 gold production was at 73,685 ounces at AISC of $1,483 per ounce bettering the guidance range. Cracow has also achieved a record monthly mill throughput of 57,1000 tonnes in May. Furthermore, there has been a 324% increase in resources at the Klondyke-Royal deposit “Transformational year” Aeris executive chairman Andre Labuschagne said:  “FY21 truly was a transformational year for Aeris Resources and FY22 has also started off on a positive note – yesterday we repaid the last of our senior debt facility, making the Company debt-free for the first time in more than 9 years. “Aeris started the year by completing the acquisition of the Cracow Gold Operations (Cracow) on 1 July. Cracow has been a great fit for Aeris and the Cracow site team have transitioned well into the Aeris ‘family’. “Importantly,Cracow delivered gold production and AISC within our FY21 guidance range and provided strong cashflows for the Company. “We acquired Cracow because we believe there is good potential to extend mine life beyond the Ore Reserve / Mineral Resource base that existed at the time of acquisition. “We continue to stand behind this belief and during the year updated the Mineral Resource estimates at the Roses Pride and Klondyke Royal deposits and also invested almost $15m in new tailings dam capacity. “FY21 truly was a transformational year for Aeris Resources and FY22 has also started off on a positive note.” Resource drilling continues at Tritton Triiton’s FY2022 copper production guidance is between 21,000 tonnes and 22,000 tonnes at AISC between $3.95 per pound and $4.30 per pound. Resource drilling will continue at the Budgerygar deposit during the next quarter as drilling continues at the Constellation deposit with three drill rigs operating. In addition, drilling of the diamond tails is expected to be completed in the next couple of weeks before the RC drill rig re-commences testing the southern and western extents of the mineralised system near the surface. Approval for an additional 45 diamond drill holes has been received from the NSW Resources Regulator. Labuschagne adds: “The Tritton Copper Operations (Tritton) had some operational challenges during the year but we were able to achieve the revised copper production guidance without changing our targeted AISC range. “FY22 copper production guidance at 21,000 tonnes to 22,000 tonnes is consistent with our FY22 production target advised in June last year and whilst the AISC guidance has increased this year, compared to the FY21 result, it is largely driven by the lower production volumes.” Exploration will be accelerated at Cracow Cracow’s FY22 gold production guidance is between 67,000 ounces to 71,000 ounces at an AISC between  $1,550 per ounce and $1,600 per ounce. Aeris continues to review the long-term mine plan, targeting opportunities to increase ore production in line with the upgraded processing capacity. Exploration will be accelerated for near mine underground targets, potential open pits and Greenfields exploration. A prospectivity review has been completed resulting in a revision of priority targets. $13 million exploration budget Labuschagne adds: “In FY22 we are intending to spend $13m on exploration activities at Cracow on both brownfields and greenfields opportunities – an upgrade on our thinking at the time of acquisition, when we proposed spending $13m over the first two years of ownership. “Extending mine life at Cracow also means looking at things differently and over the last 12 months the site team have been challenging the paradigms across all aspects of the operation and we are seeing the benefits flow through. “FY22 copper production guidance at 21,000 tonnes to 22,000 tonnes is consistent with our FY22 production target advised in June last year and whilst the AISC guidance has increased this year, compared to the FY21 result, it is largely driven by the lower production volumes.” “Mineralisation remains open” “We have always held the view there was more copper to be found on our tenement package at Tritton. “In November 2020 this view was validated when the first drill hole (TAKD001) at Anomaly K (now called the Constellation deposit) intersected 19.95 metres of copper sulphide mineralisation grading 2.41% Cu,0.64g/t Au and 4.6g/t Ag from 197.2m. “Since that first intersection of copper mineralisation, drilling results at Constellation have exceeded expectations. “The ongoing drilling program has now defined high grade mineralisation (oxide, supergene and sulphide) from within 5 metres of surface down plunge over 850 metres and along strike up to 200 metres. “Importantly, mineralisation remains open along strike to the south and down plunge.” - Ephrems Joseph