Sydney, June 30, 2008 AEST (ABN Newswire) - Tamaya Resources (ASX:TMR)(PINK:TMAYF) Announce the grade of Punitaqui Ore has reached 1.4% Cu and higher during June. This represents a 50% increase in ore grades mined since September 2007 with mining operations comfortably support 3000 tonnes per day production. The Punitaqui operations are focused on optimisation and further expansion including diamond drilling on deeper zones at Cinabrio to commence in August.
Mining - Volumes and Grades reach planned levels
- The Cinabrio mine has established stoping blocks in areas of higher grade between the RL300 and RL400 level, and production for June is above the long term Punitaqui Total Resource grade of 1.30% Cu after 9 months of mining through lower grade ores. This signals an end to a challenging period in which the Cinabrio mine has operated through areas as low as 0.7% Cu ore.
- In the past 3 weeks, grades have trended to 1.4% Cu and higher, and an average grade of 1.3% Cu - 1.4% Cu is expected to be maintained from this point onwards.
- Stoping activities have not only advanced into higher grade areas but also advanced in terms of size and productivity - a fortnight ago, Cinabrio blasted 85,000 tonnes of material in a single blast, which represents the largest single blast in the mine's history. Larger and more productive stopes will reduce mining costs.
- This improvement in mining effectiveness has allowed volumes in excess of 5000 tonnes per day to be trucked to the Punitaqui crushers on a regular basis, reducing the needs for trucking over weekends and improving the utilisation and cost base of our ore haulage fleet.
- This significant improvement in underground operations has demonstrated that permitting of the open pit at Cinabrio is no longer time sensitive - but it is nevertheless on track to allow commencement of operations in Q1 2009.
Crushing - Refurbishment is Completed
- The crushing circuit refurbishment has been completed, allowing both more reliable operations, and the closing of the crushers to a finer crush size which will enhance tonnage throughput and copper recoveries. These improvements are visible in June, and will be evident in the second half of the year.
- Punitaqui started to accumulate substantial stockpiles of ore both before the crusher and between the crushers and the mills (see pictures below), that allow the operation to run continuously without disruptions for ore shortages.
Milling and Flotation Plant
- During June, planning and preparations have commenced for the expansion of Punitaqui operations to 4000 tonnes per day in 2009.
- This expansion over the next 18 months will take place in a steady series of increments based on installing
1. Two 14' x 19' ball mills (which are already purchased and on site, and for which foundations are ready.
2. Flotation cells,
3. A second thickener (on site - foundations already completed),
4. A third filter - to be acquired.
Operating Costs - Trending lower with volume and grade
- A considerable amount of optimization work lies ahead and is an ongoing process in an environment which is not conducive to cost reduction, although Punitaqui unit costs are reducing on the impact of higher volumes, significantly improved copper grade, and improving copper recoveries. Based on current power and water costs, and assuming that the US$:Chilean peso rate remains constant, unit costs of US$1.80/lb are targeted by early 2009.
- Power costs at Punitaqui are currently running at 18c/kWh, and security of power supply has been improved at Punitaqui with the installation by our power supplier, of a standby diesel generator located less than 2 kilometres from the plant.
- Water supply and security is an ongoing challenge in Chile, and Tamaya has completed an overhaul of its water supply and reticulation systems in June, to reduce reliance on local aquifers, and develop longer term storage options. A long term contract has been entered into for the supply of large volumes of water from a municipal dam, through a network of irrigation canals.
- A significant dam at Punitaqui (see picture below) is being finalised, to add to the operation's water security. This dam can hold up to 35,000 m3 of make up water for the plant, and will be filled with the water from the long term contract in place.
Exploration at Punitaqui Operations
- Diamond drilling of the deeper extensions of the Cinabrio orebody is set to commence in August 2008. Geophysical studies have suggested good potential for resource extensions at depth. It is hoped that these extensions would continue the grades of >2% Cu at depth, which are comprised of andesite ore and therefore offer significantly higher recoveries than the harder 'lutite' ores above the RL105 level.
- Once this programme is completed, the drilling rig will be moved to test deeper targets at the Dalmacia/Arco Iris system which has been demonstrated (see ASX announcement of 5th June 2008) to extend over a strike length of 1.2km, and over 400m in width.
- Dalmacia and Arco Iris have the potential to add very significantly to the life of the Punitaqui Operating Division. Currently, total JORC compliant resources for the Punitaqui Division (in all categories) stand at 11.6 million tonnes at an average grade of 1.30% Cu. This indicates, at 3000tpd operating rate, a mine life of between 11 and 12 years, and this is expected to increase through ongoing drilling for resource development.
Note:
The estimated Mineral Resources were prepared in accordance with the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the "JORC Code"). The information in this report that relates to Mineral Resources is based on information compiled by Mr. Colin Lutherborrow (who is employed by Zilloc Pty Ltd) and who is a member of the Australasian Institute of Mining and Metallurgy. Mr. Lutherborrow has sufficient experience which is relevant to the style of mineralization, the type of deposit under consideration, and the activity that he is undertaking to qualify as a Competent Person as defined by the JORC Code. Mr. Lutherborrow consents to the inclusion in this report of the matters based on the information he has provided in the form and context in which they appear.
Contact
Hugh Callaghan
Executive Chairman
Tamaya Resources Limited
Investor Relations:
Radar Investor Relations
TEL: 1 800 688 788
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