Jaguar Operation

Ownership
IGO 100%.

Location
60km north of Leonora and 300km north of Kalgoorlie.

Located on the on the traditional lands of the the Ngadju, Wongatha, Koara, Ngalia, Wutha Peoples.

Jaguar Operation Regional Exploration targets
Figure - Jaguar Operation Regional Exploration targets

Background and History

The Jaguar Operation was acquired by IGO in 2011. The Operation originally comprised the Jaguar and Bentley zinc-copper-silver-gold underground mines and processing facility. During FY14, the Jaguar underground was closed.

The Teutonic Bore deposit was discovered in 1976. Between 1980 and 1985, the Seltrust-MIM Joint Venture mined and treated open pit and underground ore from the Teutonic Bore deposit, with historical records indicating that massive sulphide material remains within the historic Teutonic Bore resource envelope. The Jaguar Operation originally comprised the Jaguar and Bentley zinc-copper-silver-gold underground mines and processing facility. The Jaguar deposit was discovered in 2002 and brought into production as an underground zinc-copper-silver mine in 2007. The Bentley deposit was discovered in 2008 and brought into production in 2011. Ore is processed at the Jaguar concentrator which produces a copper and a zinc concentrate. The copper concentrate also contains significant silver and gold credits. The concentrates are trucked to the port of Geraldton where they are shipped to our customers.

Geology

The Jaguar Operation comprises approximately 395km2 of tenements that covers 50km of strike prospective for the discovery of Volcanogenic Massive Sulphides deposits. The belt encompasses three known high grade zinc-copper-silver-gold deposits: Teutonic Bore (inactive, discovered in 1976), Jaguar (mining recently completed, discovered in 2002), 4km south of Teutonic Bore and Bentley (in production, discovered in 2008), another 4km south of Jaguar.

Jaguar Operation - Bentley Mine
Figure - Jaguar Operation - Bentley Mine - 3D isometric projection showing mineralised envelopes, drilling and planned development.

Mining

The Jaguar Operation is an owner operated mechanised underground mine that uses predominantly long-hole stoping with backfill. Mining is carried out using a fleet of 1700 Caterpillar Load Haul Dumps excavators and 60t Caterpillar trucks and other support equipment. Ore is hauled to surface by truck to ore stockpiles and then transported to the nearby Jaguar mill for processing.

Processing

Ore is processed at the Jaguar concentrator which produces a copper and a zinc concentrate. The copper concentrate also contains significant silver and gold credits. The concentrates are trucked to the port of Geraldton where they are shipped to our customers. All mining for FY16 was sourced from Bentley underground mine.

The Jaguar processing plant has traditionally processed around 420,000 tonnes per annum but work is underway to push this target to 500,000 tonnes per annum. The Jaguar processing facility consist of a primary crusher, SAG and Ball mills followed by differential floatations to produce two streams of concentrate, copper and zinc. The copper concentrate averages around 21-25% copper and the Zinc 48-50% zinc.

Jaguar Operation processing plant at sunrise
Photo - Jaguar Operation processing plant at sunrise.

FY16 Production

A total of 497,751t (FY15: 485,302t) of ore at 8.98% Zn, 1.77% Cu, 131g/t Ag and 0.77g/t Au was mined from the Bentley underground mine, predominantly from the Arnage and Comet lenses. Advancement of 2,539m of capital development was undertaken.

The processing facility treated 505,578t of ore at 8.90% Zn, 1.70% Cu, 128g/t Ag, 0.75g/t Au (FY15: 488,466t @ 10.5% Zn, 1.75% Cu, 156g/t Ag).

Metal production was 39,335t Zn (FY15: 44,999t), 7,412t Cu (FY15: 7,380t), 1,603,565oz Ag (FY15: 1,876,384oz), 4,880oz Au (FY15: 4,439oz) in 112,711t (FY15: 122,029t) of concentrate. The production of zinc was at the upper end of FY16 guidance and copper production exceeded restated FY16 guidance.
 

FY2016 Guidance

Guidance for the Jaguar Operation for FY17 is for production of 4,600 to 5,100t of copper metal and 39,000 to 43,000t of zinc metal in concentrate. Cash costs for FY17 are forecast at $0.70 to $0.80/lb of zinc, including royalty and net of by-product credits. Sustaining capital, development and exploration expenditure are forecast to be $8 to $9 million, $12 to $13 million and $3 to $4 million respectively.

Near Mine Exploration

In FY16 drilling at Bentley commenced from the hanging wall drive established in FY15 primarily for the conversion of inferred resources to indicated category and to drill test mineralisation extensions at depth. As a result, the conversion of Arnage and Flying Spur lenses from inferred to indicated category extended from 3820mRL in FY15 to 3625mRL in FY16. In addition, the Arnage lens has extended 270m down dip from FY15 confirming the Arnage mineralisation is continuous to Bentley Deeps mineralisation drilled in FY15 to a depth of 1,000m below surface. Electromagnetic downhole geophysical surveys were conducted in FY16 and resulted in off hold conductors being identified to the south of Arnage lens. These conductors will be tested in early FY17 with further exploration drilling planned to test extensions of the Arnage and Flying Spur lenses below a depth of 1,000m from surface.

Cross Section of Bentley deposit
Figure: Cross Section of Bentley deposit showing location of Arnage and Flying Spur lenses, intercept pierce points and planned follow-up drilling pierce points

Regional Exploration

Exploration on the 50km of favourable mineralisation stratigraphy for VMS systems at Jaguar will continue through FY17.

Further details will be released in Quarterly reports.

 

Jaguar Operation Gallery