Why Aeris Resources Limited Shares are Up 15% Today (ASX:AIS)
The Aeris Resources Ltd [ASX:AIS] shares are up today 15.5% at time of writing after releasing several updates on their projects.
Aeris is a copper and gold producer and explorer. Their focus is their fully owned Tritton Copper Operations located in New South Wales and their Cracow Gold Operations in Queensland. They also have a 70% stake in Torrens in South Australia.
There’s more out there
Aeris has been taking on several projects to extend the mine lives of Cracow and Tritton.
Let’s start with Cracow.
Located 500km northwest of Brisbane, Cracow extends over 990km squared. Cracow started operating in 2004, and Aeris bought it in July last year.
Aeris recently updated their mineral resource estimate for Cracow to 3.9 million tonnes at @3.1 grams per tonne gold and 2.3 grams per tonne of silver. Their ore reserve estimate as at 30 June 2021 is at 690,000 tonnes.
Aeris has increased its exploration budget for Cracow for FY22 to $13 million. Of this, $9 million will be spent on resource definition drilling programs at Eastern Field. Then, $4 million will go to greenfield exploration projects.
Andre Labuschagne, Aeris’ Executive Chairman, said:
‘Over the life of Cracow there is a strong history of Ore Reserve and Mineral Resource replenishment. With the recent announcement of the updated Ore Reserve and Mineral Resource estimates for 30 June 2021, we have more gold in both categories than when we acquired Cracow on 1 July 2020.
‘The increases in Ore Reserves and Mineral Resources are the result of multiple life extension projects, including challenging operating paradigms to enable lower cut-off grades and success from the drill bit’
In regards to Tritton, Aeris is spending $50 million in FY22 to develop three new sources of production. These are the Budgerygar deposit, an extension of the Tritton underground mine, the Avoca Tank underground mine, and the Murrawombie Pit cut-back.
Labuschagne said in regards to Tritton:
‘We believe there’s more copper to be found on the Tritton tenement package. The recent discovery of the Constellation deposit has validated that view and having established infrastructure and processing capability reduces the time to production for new discoveries by years, and sometimes decades.’
They’ll also be spending $15 million in an exploration program for the year. They are looking to produce between 21,000 and 22,000 tonnes of copper at Tritton this year.
What could happen next?
Aeris has increased guidance for the year for Cracow to between 67,000 ounces and 71,000 ounces.
At time of writing, shares were trading at 24.2 cents, 15.5% higher than yesterday’s close.
Interested in investing in gold? Check out our free report ‘How to Buy and Store Real Gold in Australia in 2021’, where Editor Brian Chu reveals his top gold investing secrets. You can access it here.
PS: Our publication The Daily Reckoning is a fantastic place to start your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here.