AIC Mines Limited announced updated Mineral Resource and Ore Reserve ("MROR) estimates for its Eloise Copper Mine as at 31 December 2022. AIC Mines has previously updated its MROR estimates at 30 June each year but has now changed to a 31 December cut-off date to better align with its annual business planning schedule. Exploration and resource definition drilling conducted by AIC Mines over the six-month period from 30 June 2022 to 31 December 2022 and improved geological controls have delivered a significant increase in the Mineral Resource estimate in terms of resource tonnes and contained copper, gold and silver.

The majority of the increase has been in the Macy, Lens 6 and Deeps (Elrose Levuka South ­ Lower) deposits. The Mineral Resources reported here relate to the Eloise Copper Mine only and do not include the Jericho Copper Deposit. Jericho Mineral Resources are estimated at 9.8 million tonnes grading 1.8% copper and 0.4g/t gold containing 180,000 tonnes of copper and 110,600 ounces of gold.

The Eloise Mineral Resource estimates are based on a long-term copper price of AUD 10,500/t and are reported and classified in accordance with the JORC Code (2012). The economic inputs and cut-off grades used for the 31 December 2022 Mineral Resource estimate are identical to those used for the previous estimate as at 30 June 2022. Total Mineral Resource tonnes at Eloise have increased by 20%, contained copper by 19% and contained gold by 19% net of mining depletion (278,100t grading 1.9% Cu) from 30 June 2022 to 31 December 2022.

The major changes include: Increase of 1,176,300t grading 2.6% Cu was contributed by: Initial resource estimate for the Lens 6 deposit of 583,200t grading 3.4% Cu ­ which was only discovered in September 2022. Lens 6 remains open up and down dip and along strike. Improved geological interpretation, following external review, leading to increases across all resource areas totalling 593,100t grading 1.8% Cu.

Reduction of 223,300t grading 3.7% Cu in the Elrose Levuka South Upper zone as a result of infill drilling downgrading the continuity of mineralisation. Similar to the outcome with Mineral Resources, infill drilling, reinterpretation, resource reclassification and mine planning evaluation has delivered a significant increase in the Ore Reserve estimate in terms of ore tonnes and contained copper, gold and silver. The majority of the increase has been in the Upper Zone (Macy, Elrose Levuka North and South) and Lens 6 (included in the Elrose Levuka South Lower Zone).

The Ore Reserves reported here relate to the Eloise Copper Mine only and do not include the Jericho Copper Deposit. AIC Mines expects to report the maiden Jericho Ore Reserve during the June 2023 Quarter. The Ore Reserve estimates are based on a long-term copper price of AUD 10,500/t and are reported and classified in accordance with the JORC Code (2012).

The economic inputs and cut-off grades used for the 31 December 2022 Ore Reserve estimate are identical to those used for the previous estimate as at 30 June 2022. Total Ore Reserve tonnes have increased by 42%, contained copper by 46% and contained gold by 32% net of mining depletion (278,100t grading 1.9% Cu) from 30 June 2022 to 31 December 2022. The major changes include: Maiden Ore Reserve for Lens 6 (included in the Elrose Levuka South Lower Zone) added 347,100t grading 3.3% Cu.

Infill drilling, improved geological interpretation and an external review, lead to increase across all other reserve areas totaling 395,100t grading 1.7% Cu. Reduction of 75,300t grading 2.0% Cu in the Elrose Levuka South Lower longhole open stopes as a result of stope redesign (more pillars and reduced stope height). Since taking ownership of the Eloise Copper Mine in November 2021 AIC Mines has completed almost 15,000m of underground drilling in the Macy, Levuka and Deeps areas at a cost of $4.6M.

This drilling has delivered the increase in Ore Reserves and Mineral Resources at a cost of $0.09/lb of copper and $0.03/lb of copper respectively. Ongoing evaluation of the Eloise drilling database continues to identify opportunities for Mineral Resource and Ore Reserve growth. The current focus of resource definition drilling at Eloise includes targeting additional Ore Reserves in the upper zone at Macy, Levuka North and South as well as extending the extents of the Ore Reserves in the Deeps at Lens 6 and the sublevel cave.

A second drilling rig commenced underground drilling recently. The rig will focus on resource definition and in-mine exploration drilling in the Deeps at Lens 6 and the sublevel cave. AIC Mines is planning for two rigs to be drilling underground at Eloise for the remainder of the year.

Moving forwards, AIC Mines will report MROR estimates for the Eloise operations annually at a 31 December cut-off date.