Aeris Resources Limited (ASX: AIS) is a diversified mining and exploration company that produces copper and gold. On 24 April 2019, the company released its quarterly activities report for the March quarter 2019.
During the March 2019 quarter, the total copper production was 6,223 tonnes at C1 of A$2.93/lb. The YTD production of copper is ahead of the plan at 19,491 tonnes at C1 of A$2.89/lb. Earlier the production guidance was 24,500 tonnes. Now, this copper production guidance is upgraded to 25,500 tonnes at a C1 cash cost of A$2.75/lb to A$2.90/lb.
On the Northern half of Tritton tenement package, there were 25 new anomalies which were identified. At Torrens, the drilling started during the quarter. The first drillhole known as TD7 was successfully drilled down which was 858.6 metres deep. This drillhole is situated around 1.5 km from the lake shore. The drillhole met a wide zone of skarn-like alteration containing abundant magnetite ± K feldspar ± quartz ± chlorite.
Within the wide magnetite skarn, there was 60-metre-wide hematite ± K feldspar ± sericite altered non/weakly magnetic interval.
After the completion of the drilling at the TD7, the drill site was moved 8 km east towards the middle of Lake Torrens. The drillhole TD8 which was designed for the purpose of targeting a semi coincident gravity and magnetic geophysical anomaly located proximal to a series of interpreted dilational structural features intersected an artesian aquifer after a drilling 100 metres downwards. As a result, the drilling activities got suspended.
The next drill hole was TD9 which was designed to target a coincident magnetic and gravity anomaly 3 kilometres north of TD8 which also came across artesian aquifer after drilling 67 metres downhole. In order to manage the aquifer water flows, new processes were implemented. Initially, the new method was successful. However, the presence of unconsolidated sand layers through the aquifer horizon was difficult to control than planned for. By the end of the March quarter 2019, the drillhole was stopped at 145.2 metres.
Now, the company will be undertaking a thorough review of all the current system as well as procedures that are related to drilling through the upper 150 metres of the cover sequence. Once the review gets completed, the company will recommence the drilling activities in the second half of April 2019.
C1 Cash cost at A$2.93/lb were lower than the cost reported in the previous quarter due to factors like lower mining, TC/RC’s and product handling costs.
By the end of the March 2019 quarter on 31 March 2019, Aeris had cash and receivables worth $23.9 million, up by $2.2 million as compared to the previous quarter. The company received a net hedge settlement of $0.4 million.
On 15 April 2019, the company provided an update on the CSA offer.
As announced to the market on 2 April 2019, Aeris Resources Limited was under discussion with Glencore regarding the anticipated acquisition of CSA mine.
In the previous five years, the stock has generated a return of 161.66%. The AIS shares are trading at $0.120 on ASX (as at Friday 26 April, AEST: 12: 15 PM) up by 4.348% as compared to its previous closing price. AIS holds a market capitalization of A$52.41 million with approximately 455.71 million outstanding shares and ASX declared PE ratio of 0.350x.
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