ALCYONE RESOURCES LTD - ASX: AYN

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Description

Alcyone Resources (ASX Ticker: AYN) is an emerging resource company listed on the Australian Securities Exchange with a portfolio of mining and resource assets in Queensland and New South Wales. The Company’s key asset is the Texas Silver Project in Queensland which includes the Twin Hills Silver Mine and a group of advanced exploration assets. The Twin Hills Mine produced approximately 500,000 ounces of silver between March 2007 and July 2009, when it was placed on full Care & Maintenance. Alcyone is focused on a comprehensive reassessment of the Twin Hills Project with a view to re-commissioning the operation during 2010/11.

Texas Silver Project, Queensland

The Texas Silver Project comprises an approximate 275 square kilometre portfolio of mining, resource and exploration assets located near the town of Texas, approximately three hours south-west of Brisbane in south-east Queensland.

The Project includes the Twin Hills Mine (currently on Care & Maintenance), the Silver Spur Project and the Mt Gunyan Project. Alcyone is currently undertaking a review of all geological data and it is anticipated that a resource model will be announced to the market in the first quarter of 2010.

The Company’s current aim within the broader project area is to evaluate the potential to recommence mining at the Twin Hills Mine, as well as undertaking exploration work to establish additional feed for any future heap leach operation.

In March 2010 Alcyone announced an updated JORC compliant mineral resource estimate for the Twin Hills and Mt Gunyan deposits of 5.9Mt @ 79g/t Ag for 15.1Moz of contained silver, comprising:

* 3.8Mt @ 83g/t Ag for 10.2Moz contained silver at Twin Hills
* 2.1Mt @ 73g/t Ag for 4.9Moz contained silver at Mt Gunyan

The resource estimate reflects a thorough and rigorous analysis of the historical data available from the deposits, and over 85% of the resource sits in the Measured and Indicated categories.

Tally Ho, Queensland

Alcyone Resources holds six granted tenements totalling approximately 151km² in the Tally Ho area, 45km south-west of Mackay in central Queensland, which is prospective for silver and base metals mineralisation. The historic Tally Ho workings consist of two short adits, a shaft and, further afield, numerous shallow pits and trenches. The mine area was discovered around 1900 and saw selective, small-scale mining until about 1915.

The most comprehensive report on the tenements is that of Blanchard (Chief Geologist MIM, 1937), who examined and mapped some of the 'greisen' ('dogtooth' quartz vein) outcrops in the area and carried out detailed channel sampling of the mineralisation in the two adits. Blanchard's best results came from Adit No 2 where he recorded 13.1m at 273g/t silver, 2.69% zinc, 2.65% lead and 0.68% copper. He also recorded significant gold values but these could not be substantiated from re-sampling by subsequent tenement holders.

The Company undertook drilling programs at Tally Ho in 2006, 2007 and 2008. Alcyone is currently reviewing this data with the expectation of announcing the results of the review in the third quarter of 2010.

Mt Scott, Queensland

The Mt Scott Project is located approximately 65km south-west of Mackay in central Queensland. The project is contained within one granted tenement covering approximately 227km.

Exploration for porphyry copper and epithermal gold was carried out by a number of exploration companies in the 1970's and 1980's. A number of low-order base metal anomalies were established and investigated but have not yet been drilled.

Rivertree, New South Wales

The Rivertree exploration licence, which covers an area of around 35km, is located approximately 100km east of Twin Hills and 55km north-east of Tenterfield in northern New South Wales. It forms part of a joint venture between Alcyone Resources Ltd (75%) and Malachite Resources NL (25%).Silver mineralisation was discovered at Rivertree in the later part of the 19th century and mines consisting of shallow shafts and adits were developed on the silver- and base metals-rich sulphide veins.

During 2008 the Company identified high grade rock chip samples with peak results of 1,660g/t silver, 13.55% lead and 3.1% zinc at the Phoenix North workings and a best gold result of 8.19g/t on the Philippines Lode. A strongly anomalous gold stream sediment value of 256 ppb was also identified.

Mine For

copper, silver, lead, gold, zinc

Location of operation(s)

Queensland, New South Wales

Address

Level 1 50 Kings Park Rd
WEST PERTH, WA, Australia

Phone

+61 8 9322 3000

Email

Website

http://www.alcyone.com.au

Last Updated

6/5/2011