Eloise Delivers 3,444t Copper at A$4.99/lb; Jericho Drilling Extends High-Grade Zones

Strong Production Performance at Eloise

AIC Mines Limited reported a standout December 2024 quarter, with the Eloise copper mine producing 3,444 tonnes of copper in concentrate. This output was achieved at an all-in sustaining cost (AISC) of A$4.99 per pound of copper sold, marking an improvement from previous quarters. The mine’s operational efficiency was bolstered by higher copper grades and record recovery rates, with processing plant throughput exceeding expectations.

Financially, Eloise generated $52.2 million in metal sales, including by-product credits from gold and silver. Operating cashflow surged 61% quarter-on-quarter to $23.8 million, resulting in a net mine cashflow of $8.7 million after capital investments. This strong cash generation underscores the mine’s robust economics and operational discipline.

Advancing the Jericho Project and Exploration Pipeline

Exploration and development at the Jericho copper deposit, located just 4 kilometres from Eloise, continued to gain momentum. Recent drilling extended high-grade mineralisation notably at the Matilda North shoot, with intercepts such as 13.0 metres grading 6.35% copper and 1.0 g/t gold. These results are expected to increase the Jericho Mineral Resource Estimate in the upcoming March 2025 update.

The Jericho link drive development remains on schedule and budget, progressing steadily towards connecting with the deposit. Concurrently, the company has initiated the EPC tender for the Eloise processing plant expansion, attracting strong interest from experienced engineering firms. This expansion is critical to accommodate future ore feed from Jericho and other regional projects.

Exploration Success Beyond Jericho

Beyond Jericho, AIC Mines reported encouraging drilling results at the Sandy Creek project and other regional prospects within trucking distance of Eloise. Step-out drilling at Sandy Creek confirmed extensions of higher-grade mineralisation, while initial testing at Surprise Ridge, Eloise South, Holbrook, and Bagdad is underway with assay results pending. These efforts reflect the company’s strategic focus on transformational discoveries to supplement and potentially expand current production.

Financial Position and Operational Outlook

Despite a reduction in cash on hand to $44.7 million from $62.6 million in the prior quarter, AIC Mines maintains a strong liquidity position. The cash decrease primarily reflects a change in the company’s concentrate invoicing strategy, shifting from advanced provisional payments to monthly invoicing, which increased concentrate receivables. The company expects cash flows to normalise with three payments per quarter resuming in March 2025.

Looking ahead, production for the March 2025 quarter is forecast to moderate to approximately 3,000 to 3,200 tonnes of copper and 1,250 ounces of gold in concentrate as mining transitions between ore zones. AIC Mines remains on track to meet its full-year FY25 production guidance of around 12,500 tonnes of copper and 5,000 ounces of gold at an AISC near A$5.25 per pound.

Sustainability and Community Engagement

Operational safety remains a priority, with ongoing cultural and safety workshops addressing a recent uptick in minor injuries. Environmentally, the company reported no incidents during the quarter and continues to support local communities, exemplified by the Eloise Christmas Party for neighbouring landholders. The mine’s emergency response teams also contributed to regional bushfire management efforts.