Eloise Copper Mine

The Eloise Copper Mine is located in North Queensland, 60 kilometres SE of Cloncurry and 155 kilometres ESE of Mt Isa. The mine has an extensive production history. It was commissioned in 1996 and has since mined approximately 12.5Mt of ore grading 2.8% Cu and 0.8g/t Au to produce 339,000t Cu and 167,000oz Au in concentrate.

Location of the Eloise Copper Mine

Current operations consist of an underground mine accessed via decline. The upper levels of the mine (above 1,190m below surface) are extracted by longhole open stoping and the lower levels are extracted by sublevel caving.

Processing is via conventional crushing, grinding and sulphide flotation with capacity to treat 750,000tpa. Power for the processing plant is provided by an on-site diesel power station. Metallurgically the ore is very consistent as the ore mineralogy at Eloise is almost exclusively chalcopyrite. Processing achieves high copper recoveries (94% – 95%) and produces a clean concentrate. The concentrate has significant by-product credits from gold and silver.

Figure 1. Eloise Processing Plant

Geology

Mineralisation is hosted within a strongly foliated meta-sedimentary sequence comprising arenites and schists. The metasediment sequence also contains a coarse-grained amphibolite body possibly representing an early intrusion of gabbroic composition. Mineralised zones occur as steeply plunging lenticular bodies with strike lengths between 100m and 200m and attaining a maximum width of 25m. The main zone of mineralisation (Levuka-Eloise Deeps) demonstrates continuity down plunge over 1,500 m and remains open at depth.

The copper at Eloise occurs predominantly as chalcopyrite. Copper mineralisation occurs as either massive sulphide lenses or stockwork veins. Gold is located on the grain boundaries or as inclusions in sulphides and is associated with chalcopyrite, pyrite, pyrrhotite and magnetite.

Ore Reserve

Ore Reserves at Eloise total 1,424,000t containing 30,300t of copper and 26,700oz of gold as at 30 June 2021. The Ore Reserves are reported and classified in accordance with the JORC Code (2012).

Reserve Category Tonnes Cu Grade (%) Au Grade (g/t) Contained Copper (t) Contained

Gold (oz)

Proved
Probable 1,424,000 2.1 0.6 30,300 26,700
Total 1,424,000 2.1 0.6 30,300 26,700

The Ore Reserves Estimate is reported using a 1% Cu cut-off (above 0mRL) and 1.5% Cu (below 0mRL).
Tonnages have been rounded to the nearest 1,000 tonnes.

Mineral Resource

Mineral Resources at Eloise total 2,696,000t containing 65,500t of copper and 60,100oz of gold (inclusive of Ore Reserves) as at 30 June 2021. The Mineral Resources are reported and classified in accordance with the JORC Code (2012).

Resource Category Tonnes Cu Grade (%) Au Grade (g/t) Contained Copper (t) Contained

Gold (oz)

Measured
Indicated 1,308,000 2.5 0.7 32,500 28,500
Inferred 1,388,000 2.4 0.7 33,000 31,600
Total 2,696,000 2.4 0.7 65,500 60,100

Mineral Resources are inclusive of Ore Reserves.
There is no certainty that Mineral Resources not included in Ore Reserves will be converted to Ore Reserves.
Mineral Resources are estimated using a 1% Cu cut-off (above 0mRL) and 1.5% Cu (below 0mRL).
Tonnages have been rounded to the nearest 1,000 tonnes.

Significant Exploration Upside

AIC’s exploration strategy for Eloise will focus on both extensions to the known resource areas and the discovery of new satellite lodes within the Eloise mining tenements.

Previous geophysical surveys have identified electromagnetic conductors in the Far West Corridor, the West Corridor (including Macy North, TD Prospect, Emerson and Wynberg), the East Corridor (including Levuka-Elrose extension and Nobbies) and Far East Corridor (Jericho lode extensions).