Maronan Metals (ASX:MMA) outlined recent work and near-term plans for its silver-rich polymetallic project in north west Queensland during a presentation by Exploration Manager Andrew Barker at the RIU Explorers event, marking the company’s first presentation in Western Australia.
Project footprint and current resource
Barker said the company holds a single exploration tenement located about 65 kilometers south of Cloncurry in the Mount Isa District. He described the project as hosting more than 65 million tonnes of resources, comprising two main components: a 33 million tonne “Broken Hill-style” silver-lead deposit and a 32 million tonne iron sulphide copper-gold deposit that overprints the silver-lead mineralization.
- 122 million ounces of silver
- 2 million tonnes of lead
- 270,000 tonnes of copper
- a bit over 0.75 million ounces of gold
He said the silver-lead deposit extends about 1 kilometer north-to-south and has been drilled to 1,200 meters below surface, remaining open at depth. The copper-gold system has an approximately 300-meter strike and has been drilled down plunge to 1,500 meters, also remaining open.
Scoping study focused on the “Starter Zone”
Barker said Maronan released a scoping study (preliminary economic assessment) in October last year on a portion of the broader resource called the “Starter Zone.” He characterized the study as demonstrating an “economically compelling” 10-year project and said the analysis used what he now views as “quite conservative” silver prices.
He emphasized that the inventory used for the PEA represented less than a quarter of the total resource and argued there is “significant value” in growing the indicated resource base and improving project economics through further engineering work.
Within the Starter Zone, Barker said a resource update released last year resulted in:
- 5.3 million tonnes of indicated silver-lead resource
- 1.7 million tonnes of indicated copper-gold resource
Two development cases: standalone plant vs. toll treatment
The scoping study considered two development pathways. The first option was a standalone processing plant built on site. Barker said the company estimates this would cost around AUD 270 million and would generate an NPV8 of around AUD 380 million. He described payback as four years “from the day that you start spending money,” or two years from the start of production.
The second option evaluated toll treating material through underutilized milling capacity elsewhere in the district. Barker said this case would require about AUD 100 million in capital and generate an NPV of around AUD 360 million, with a quicker payback than the standalone plant case. He added that the company does not view the decision as strictly either-or and suggested a mixed approach could be optimal.
Scale potential beyond the starter plan
Barker highlighted the size of the overall system, noting that even if roughly two-thirds of the 65 million tonne resource base were ultimately converted—he used an example of about 40 million tonnes—processing through a 1.2 million tonne per annum plant could imply a project life of roughly three decades. He also said the scale could justify looking at higher mining and milling rates to “bring forward the value” of the project.
He pointed to ongoing resource conversion potential, stating that within the Starter Zone there is additional material the company believes can be upgraded, and that “every 1 million tonnes of resource we convert to indicated adds a year to the mine life.” He also said there are shallow opportunities close to development that have not yet been drilled and that the company intends to drill some of these targets this year.
Permitting, underground decline plans, and timeline
On the permitting front, Barker said Maronan lodged a Mineral Development Licence application with the Queensland Government in June last year. He described the licence as an intermediate step between an exploration licence and a mining licence, and said it is intended to allow development of a box cut and exploration decline. He said the company expects approval “imminently.”
Barker said the proposed exploration decline would reach about 200 meters below surface and is intended to de-risk mining by providing direct information on ground and geotechnical conditions. He said the plan includes development on the ore to visually assess mineralization beyond drill core, as well as collection of metallurgical bulk samples that could be used to generate concentrate marketing samples. He also described the decline as an underground drilling platform to support further resource conversion and growth.
Looking ahead, Barker said the company aims to begin “breaking dirt” this year, advance the box cut and decline before the next wet season, and restart surface drilling to support an updated mineral resource estimate and a pre-feasibility study. He said Maronan would like to publish an ore reserve by the end of this year and is targeting completion of a feasibility study by the end of 2027. He also said the company plans to start its mining licence applications soon.
In discussing the broader operating environment, Barker said the project sits among major regional mining operations and projects in the Mount Isa District and argued Queensland’s state government is supportive of permitting new mining developments. He concluded by saying the company believes it has demonstrated a strong economic development case with multiple attractive development pathways and intends to progress the discovery toward becoming a mine.
About Maronan Metals (ASX:MMA)
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