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 deposit was discovered in 2002 and brought into production as an underground zinc-copper-silver mine in 2007 (now mined out). All mining is now from the Bentley deposit located another 4km south of Jaguar, which was discovered in 2008 and brought into production in 2011.

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.

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.

FY17 Production

A total of 444,700t (FY16 497,751t) of ore at 8.16% Zn, 1.28% Cu, 137g/t Ag and 0.58 g/t Au was mined from the Bentley underground mine in FY17. In addition, advancement of 2,046m of capital development was undertaken.

The processing facility treated 443,485t of ore at 8.27% Zn, 1.30% Cu, 134 g/t Ag, 0.57 g/t Au (FY16 505,578t of ore at 8.90% Zn, 1.70% Cu, 128 g/t Ag, 0.75 g/t Au).

Metal production was 32,638t Zn (FY 2016: 39,000t), 4,565t Cu (FY15: 7,411t), 1,376,521oz Ag (FY15: 1,603,565), 2,532oz Au in 88,444t of concentrate. Both zinc and copper concentrate production were below FY17 guidance.

FY18 Guidance

Guidance for the Jaguar Operation for FY18 is for production of 2,600 to 3,000t of copper metal and 29,000 to 33,000t of zinc metal in concentrate. Cash costs for FY18 are forecast at $0.85 to $1.05/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, $10 to $11 million and $3 to $5 million respectively.

Business Improvement

A major focus for Jaguar over the past year has been the feasibility study of the Triumph deposit and the Jaguar Process Plant Value Enhancement Study to produce a third product from the Jaguar Operation, being a high precious metal (HPM) concentrate. Both projects aim to increase the operational cash flow and mine life to 2022. Currently the projects are in the permitting stages with regulatory approvals to be sought in the first quarter of FY18.

Near Mine Exploration

The discovery of a new massive sulphide lens named Bentayga was made in FY17 and is situated 250m to the south of the Arnage lens at a depth of approximately 800m below surface.

Drilling is continuing around the high-grade core of Bentayga to deliver an economic envelope for mining feasibility studies. Exploration is set to continue by defining the massive sulphide extents and possible extensions of Bentayga at depth and to the south.

Additional near mine exploration is planned at Triumph to test down plunge continuation and potential mineralisation directly below Stag lens. Previous work has focused on the delivery of a reserve for the Stag lens with limited focus on a potential repetition of Stag lens mineralisation at depth.

 

Jaguar Operation Gallery