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Oracle Mining operates in mining-friendly
jurisdictions with good potential for mineral
discoveries/extraction and available
infrastructure.
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Oracle Ridge Copper Mine
Background:
Reviving a Former Producer
Oracle Mining's 100%-owned Oracle Ridge Copper Mine operated from 1991 to 1996 at a rate of 1,000 tonnes per day (tpd). The mine closed primarily due to low copper prices, which averaged US$1.09/lb in 1996. As an underground operation, Oracle Ridge generates a small environmental footprint and requires less construction capital in comparison with typical open pit copper mines. Considerable copper mineralization remained at the time of closing. A significant portion of the property has not been drill-tested. The company is now conducting resource and database validation, permitting and plant design as part of a production feasibility study for a 2,000 tpd processing plant.
The underground mine is well developed with mineralization ready for stopping. Mineral processing was carried out using the flotation method after the ore had been crushed and ground. The process was normal and copper recoveries reportedly exceeded 90%. Silver and gold were also collected in the concentrates making a significant contribution to cash flow. With current precious metal prices, the by-product credit is expected to be much higher than historical values.
Historic Resource Calculations
Historically, a number of Resource and Reserve estimates were calculated at Oracle Ridge by reliable, knowledgeable professionals. At present, however, these estimates are not NI 43-101 compliant. Based on historical calculations, Oracle Mining estimates the project's Proven, Probable and Possible resources at 8.3M tons grading 2.34% copper.* Mineralization includes significant silver as well as a gold by-product. Precious metals, however, were not factored-in to any resource calculations. A key part of Oracle Mining's current work program is to upgrade the resource to NI 43-101 standards as part of the production Feasibility Study.
A Better Plant Design
The original plant was hampered by equipment inadequate for the hardness of the rock and lower capacity. This facility was completely dismantled and removed from the site at closure. The new mill will incorporate equipment designed to process rock harder than what is now known at the mine at more than twice the previous operation's capacity.
Current Work:
Database and Resource Validation, Geotechnical, Engineering
Activities in 2011 have focused on validation of the historic resource database plus engineering and design work for the proposed 2,000 tpd processing plant. Oracle Mining is also conducting geotechnical and design work for the tailings impoundment and mine permitting process. In August 2011, the State of Arizona issued Aquifer Protection Permit P-102110 to Oracle Mining's wholly-owned subsidiary, Oracle Ridge Mining LLC. The issuance of this permit is a major achievement in the permitting process. It covers the previous area of historic tailings storage and must be amended in accordance with Best Available Demonstrated Control Technology before new tailings deposition can occur.
Assay results from drilling and sampling in 2011 have to date clearly supported the historical resource calculations. As reported in May 2011, drilling returned assays that are consistent with past results, and underground sampling encountered a continuous, 150-foot intersection averaging 2.17% copper, 12.59% iron, 0.45 oz/ton silver and 0.006 oz/ton gold. Detailed drill results and additional information is available in the company's 2011 media releases.
Looking Ahead:
Feasibility Level Design and Engineering
The overall feasibility level design and engineering activities undertaken by Lyntek Inc. of Lakewood, Colorado, should be completed in the second half of 2011. In the meantime, Oracle Mining will continue with its resource and data validation work. This work will include further surface and underground drilling and sampling, with the results incorporated into an NI-43-101 resource calculation, and a continuation of drilling to further define the mineralization at exploration targets. Regulatory and operational activities will also continue, with key permits being storm water and air quality.
Assay results from drilling and sampling in 2011 have to date clearly supported the historical resource calculations. As reported in May 2011, drilling returned assays that are consistent with past results, and underground sampling encountered a continuous, 150-foot intersection averaging 2.17% copper, 12.59% iron, 0.45 oz/ton silver and 0.006 oz/ton gold. Detailed drill results and additional information is available in the company's 2011 media releases.
* Oracle Mining has not verified the above historical resources under National Instrument 43-101 reporting standards. Oracle Mining has not independently analyzed the results of the previous exploration therefore the historical results should not be relied upon. No allowance is made for dilution, mine loss or pillars, and gold and silver grades were not estimated. Resource estimates prepared under reporting codes other than National Instrument 43-101 should not be relied upon to conform to current standards and definitions. Oracle Mining believes these historical results provide an indication of the potential of the property and are relevant to future exploration. There are significant by-product credits for Au and Ag, although head grades remain unknown. Glenn R. Clark, P.Eng. of Glenn R. Clark & Associates Limited, a consultant for Oracle Mining, and a Qualified Person under NI 43-101, has reviewed this information and is responsible for the technical information reported herein.
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