Tri Origin is focussed on generating positive cash flow from its inventory of Mineral Resources as well as achieving exploration success in the prospective Lachlan Fold Belt of New South Wales, Australia.
A significant high-grade resource exists at Woodlawn, which is located around 30 kilometres south of Goulburn and 200 kilometres south-west of Sydney, where 13.8 million tonnes of high grade ore from the main Woodlawn mine and satellite pits were processed during the period 1978 to 1998.
A decision was taken in April 2007 to start work on a feasibility study of the Projects with the aim of completing the study by the first quarter of 2008.
The initial intent of the feasibility study was to examine the viability of a stand-alone Woodlawn Underground Project which involved reopening the Woodlawn underground mine to access residual high grade mineralisation from when the operation ceased in 1998.
Since then, following positive outcomes from tailings metallurgical test work, the scope of the study was expanded to also evaluate the feasibility of a stand-alone Woodlawn Retreatment Project involving reclaiming and processing the tailings produced from the previous Woodlawn open cut and underground operations.
By early 2008, the respective stand-alone studies of the Woodlawn Underground Project and Woodlawn Retreatment Project had progressed to a point where a decision was taken to focus on evaluating a staged development option, which commences with the development of a stand-alone tailings retreatment project followed by an incremental expansion into a fully integrated processing operation that treats both tailings and ore extracted by an underground mining. It is likely that this integrated project development concept will:
· introduce a desired level of flexibility into the operation;
· provide a more capital efficient approach to project development than would be possible with two stand alone operations; and
· achieve certain unit capital and operating cost advantages, particularly with the underground project.
The Lewis Ponds Project is located approximately 15 kilometres east of the city of Orange. A conceptual mine life of over six years at a production rate of 400,000 tonnes per annum has been defined for this resource.
Other regional exploration includes the Overflow Project, located in western New South Wales and 40 kilometres north of the former producing Mineral Hill Mine; the Calarie Project located near the town of Forbes; and Gurrundah Barite Project located about 40 kilometres north of Woodlawn.
In addition, joint venture agreements are in place for EL6292 and EL5812 tenements with Golden Cross Operations Pty Ltd and Universal Resources Ltd, respectively. The Cullarin Joint Venture (EL6292 and part of EL6886), is considered as having the potential for either a Woodlawn look-alike mineralisation or a high tonnage low grade gold-base metal style of mineralisation and presents a significant exploration opportunity for Tri Origin.