Develop (ASX:DVP) reports that it has delivered a ‘substantial’ Resource increase for its Sulphur Springs deposit, as part of its Sulphur Springs Zinc-Copper Project in Western Australia.
The updated Mineral Resource Estimate (MRE) has delivered a 15% increase in total resources which now totals 13.8Mt @ 5.7% Zn, 1.1% Cu, 0.3% Pb, 22.5g/t Ag and 0.2g/t Au (9.3% Zn-Eq) and paves the way for an updated Reserve to be completed in the coming quarters.
The resource increase has also delivered a ‘substantial’ increase in the projects geological confidence, with ~90% of the resource within the Indicated category, representing the project’s most robust resource to date.
Speaking on the MRE update, Develop Managing Director Bill Beament said: “This is an outstanding result which demonstrates that Sulphur Springs now has scale and therefore is well on track to becoming a significant producer of zinc and copper which will be in huge demand as part of the energy transition.
“This is an outstanding result which demonstrates that Sulphur Springs now has scalE”
With 90% of the increased Resource now in the Indicated category, we are highly confident about the outlook for Sulphur Springs and the key role it will play in Develop’s portfolio of producing assets.
Our focus is now on completing the mine designs, which will include our revised strategy of starting underground in order to access the more favourable primary ore first. This will increase free cashflow generation and reduce development risk.
At the same time, we will secure the last permit being the works approval, complete the metallurgical test work and update project cost estimates, all of which will put us on track to publish the feasibility study early next year.”
The company also notes that the expanded inventory demonstrates a ‘significant’ grade increase, with zinc values reporting up +50% and silver grades returning an increase of +15%.
In addition, Develop reports that it is close to completion of metallurgical test work and will commence with updating project costs and redesigning underground mine and open pit plans in preparation for the deposits planned updated reserve estimate.
The Sulphur Springs Zinc-Copper Project is located about 144km southeast of Port Hedland within Western Australia’s Pilbara region and comprises the Sulphur Springs and Kangaroo Caves deposits together with tenements along the 27km Panorama Trend, which are prospective for commercial grade copper and zinc mineralisation.
The contained metal hosted in the Sulphur Spring deposit now totals 786,00t Zn, 153,00t Cu and 10.4Moz Ag (1.3Mt Zn-Eq).
With the updated MRE for Sulphur Springs now delivered, Develop announces that it remains focused on various exploration activities to aid in the completion of its recently commenced updated Definitive Feasibility Study (DFS).
Completion of the updated DFS is scheduled for early 2023.
Develop creates high-performance projects that offer certainty to clients and value creation to shareholders. Its underground DNA is central to evolving the production of essential ingredients to decarbonise the world.
The JORC Compliant Resource inventory of Develop’s Pilbara projects is 24.4Mt grading 1.2% copper, 3.5% zinc, 0.3% lead and 18.7g/t silver containing more than 300,000 tonnes of copper metal and 900,000 tonnes of zinc metal.
Images: Develop Global Ltd
