The initial resource is 9.3 million tonnes at 1.2% copper, 0.2 grams per tonne gold and 7.1gpt silver for 252 million pounds of contained copper, 65,000 ounces of gold and 2.1 million ounces of silver.

The estimate comprises 5.87Mt at 1.04% copper, 0.23gpt gold and 7gpt silver in the indicated category.

Almost three quarters of the contained copper in the resource is constrained in an open pit optimisation in the indicated category.

The resource includes an underground component of 1.7Mt at 1.8% copper, 0.2gpt gold and 6gpt silver.

The Cayley Lode, named after Geological Survey of Victoria senior geologist Ross Cayley was discovered in September 2019 with a hit of 32m at 5.88% copper, 1gpt gold and 58gpt silver from 62m, including 12m at 14.3% copper, 2.26gpt gold and 145gpt silver, including 2m at 40% copper, 3gpt gold and 517gpt silver.

The maiden resource was delayed by COVID-19 lockdowns/travel restrictions, heavy rainfall and land access issues.

Stavely executive chairman Chris Cairns said it was a significant milestone for the company.

“The team on-site has done an outstanding job, under difficult circumstances, with high-quality technical work underpinning this very robust initial MRE for the Cayley Lode,” he said.

Stavely also reported an updated resource for the chalcopyrite-enriched blanket at the broader Thursday’s Gossan project of 18Mt at 0.4% copper, 0.04gpt gold and 1.6gpt silver, 85% of which now sits in the indicated category.

“This highlights the quality of the initial MRE for the Cayley Lode and the revised MRE for the chalcocite-enriched blanket, which will underpin our initial economic studies,” Cairns said.

An updated resource for the Carrolls volcanogenic massive sulphide deposit of 1Mt at 2.2% copper, 0.4gpt gold, 5.6gpt silver and 0.2% zinc was also reported.

The combined Thursday’s Gossan and Carroll’s at 28.3Mt at 0.75% copper, 0.11gpt gold and 3.5gpt silver for 210,000t of copper, 100,000oz of gold, 3.2Moz of silver and 2400t of zinc.

Stavely has announced an exploration target of 800,000t to 1Mt at 2-2.4% copper and 0.3-0.5% gold for Carrolls and 1.5-2Mt at 1.6-2gpt gold for the Cayley Lode underground for a combined 120,000-170,000t of copper and 17,000-51,000oz of gold.

“The initial Cayley Lode MRE is considered as only a starting point for this project, with enormous potential to extend the mineralisation at depth below the initial open pit,” Cairns said.

“The deposit remains open in a number of directions and we have already seen considerable potential for further high-grade mineralisation along strike to the south-east and at depth.”

Recent results have included 18m at 3.62% copper, 0.28gpt gold and 15gpt silver from 848m depth on the north-south structure.

“There is more work to be done to define the first few years of underground production and, beyond that, it will be far more economical to drill deeper from underground drill positions (and with cashflow!),” Cairns said.

As a result of the potential, Stavely has elected to delay the scoping study on a development at Thursday’s Gossan to allow time to evaluate an earlier underground production scenario for both the Carroll’s VMS and the Cayley Lode underground.

“I believe this amazing copper deposit has significant potential to be developed and could support a 20-year plus operation,” Cairns said.

“We have a significant amount of work to do to demonstrate that potential, but this initial MRE places a flag in the ground as a first look for the investing public as to what this project may become.

“This is an awesome starting point for an exciting discovery that is still in its early stages.”