Promising Metallurgical Test Results for Australian Gold and Copper

Promising Metallurgical Test Results Highlight Recovery Potential at AGC's Achilles Deposit

Australian Gold and Copper Ltd (ASX: AGC) has announced encouraging metallurgical test results from its Achilles deposit in the South Cobar Project, NSW, demonstrating robust recoveries of silver, gold, lead, and zinc through conventional processing methods.

Strong Metal Recoveries Confirm Processing Viability

Initial metallurgical test work on a 52kg bulk composite sample from Achilles has delivered exceptional recovery rates across all target metals. The sample, selected from 26 individual core samples across seven diamond drill holes, graded 229g/t silver, 1.3g/t gold, 5.5% zinc, 3.2% lead, and 0.5% copper.

Through a combination of bulk flotation and leaching processes, the test work achieved:

• 83.0% silver and 90.3% gold recoveries with concentrate grades up to 1,267g/t silver and 4.9g/t gold
• 92.2% lead and 95.7% zinc recoveries with concentrate grades up to 18.5% lead and 32.8% zinc

These results validate the technical viability of recovering multiple metals from the Achilles deposit using standard processing methods, positioning the project as a potentially valuable multi-metal development opportunity.

Sequential Processing Shows Promise for Premium Concentrates

The company also conducted initial sequential flotation tests to explore the possibility of producing separate high-grade concentrates:

• A silver-gold-lead concentrate grading 2,276g/t silver, 9.2g/t gold, and 41% lead with recoveries of up to 75.9% silver, 79.7% gold, and 92.4% lead
• A zinc concentrate grading 59.6% zinc with 69.9% zinc recovery

While these initial sequential flotation results require further optimisation, they demonstrate the potential for Achilles to produce premium-grade, segregated metal concentrates that could command stronger pricing in the market.

"This metallurgical test work was completed on seven holes from our maiden diamond drill campaign at Achilles. The results add another significant milestone for AGC confirming Achilles hosts robust, recoverable base and precious metals with strong flotation performance," said AGC Managing Director Glen Diemar.

Understanding Silver Equivalency for Achilles

With confirmation of recovery rates for all metals, AGC has now established a silver equivalency (AgEq) calculation for the Achilles deposit. This formula incorporates silver, gold, zinc, and lead using the following parameters:

This equivalency calculation will allow the company to report exploration results more effectively and establish a framework for the upcoming maiden resource estimation.

What is Flotation Processing?

Flotation is a mineral processing technique used to separate and recover valuable minerals from ore. The process works by exploiting the different surface properties of mineral particles, allowing them to selectively attach to air bubbles in a froth that floats to the surface for collection.

In the flotation process, crushed ore is mixed with water to form a slurry. Chemical reagents are added to modify the surface properties of specific minerals. When air is introduced into the mixture, the targeted minerals attach to air bubbles and rise to the surface as a froth, which is then collected. The remaining materials (tailings) sink to the bottom.

Flotation is particularly effective for processing sulphide minerals, which are common in many precious and base metal deposits. The technique can be applied as bulk flotation (recovering multiple minerals together) or sequential flotation (separating different minerals into distinct concentrates).

For the Achilles deposit, AGC tested both approaches:

1. Bulk flotation: Recovering all valuable minerals (silver, gold, lead, zinc) into a single concentrate
2. Sequential flotation: Separating minerals into two distinct concentrates – a silver-gold-lead concentrate and a zinc concentrate

The ability to produce separate concentrates can offer marketing advantages, as smelters often pay premium prices for higher-grade, single-metal concentrates compared to mixed concentrates.

For investors, understanding flotation performance is important because:

1. Recovery efficiency: Higher recoveries mean more metal can be extracted from the same amount of ore, improving project economics
2. Concentrate quality: Higher-grade concentrates typically command better pricing from smelters
3. Processing flexibility: The ability to produce different concentrates provides marketing advantages and reduces dependency on single metal prices

Successful metallurgical test work is a critical de-risking step in resource development, providing confidence that the metals in the ground can be economically extracted.

Path to Maiden Resource Estimation

The metallurgical test results for Australian gold and copper represents a significant milestone in advancing the Achilles deposit toward development. With processing parameters now established, AGC is positioned to complete a maiden resource estimation in the coming months.

"With an equivalency calculation now defined for Achilles incorporating silver, gold, zinc and lead, we look forward to the future reporting of exploration results in silver equivalents and a maiden Resource Estimation in the coming months," noted Glen Diemar.

The company's ability to establish viable processing methods at this early stage demonstrates the quality of the Achilles deposit and provides a solid foundation for future development work.

Investment Thesis: Multi-Metal Exposure with Processing Advantages

AGC's Achilles deposit offers investors exposure to a diverse basket of metals with established recoveries:

1. Precious metals foundation: With silver grades of 229g/t and gold at 1.3g/t in the test sample, the deposit has significant precious metal value
2. Base metal upside: Strong zinc (5.45%) and lead (3.18%) content provides additional value and hedge against precious metal price fluctuations
3. Processing optionality: The ability to produce either bulk or separate concentrates gives AGC flexibility in future development scenarios
4. Cobar Basin pedigree: The project follows successful precedents in the region, including the Hera Mine which produced and sold similar combined lead-zinc concentrates between 2014-2023

The robust recoveries across all metals significantly de-risk the project from a processing perspective, often one of the most challenging aspects of polymetallic deposits.

Why Investors Should Watch AGC

Australian Gold and Copper presents a compelling opportunity for investors interested in advanced exploration stories with near-term development potential:

1. Advancing toward resource definition: With metallurgical parameters established, AGC is now moving toward a maiden resource estimate for Achilles
2. Multi-metal exposure: The project offers exposure to both precious metals (silver, gold) and base metals (zinc, lead, copper)
3. Strong metallurgical performance: The demonstrated high recoveries remove a key technical risk for the project
4. Established mining district: The South Cobar Basin is a proven mining region with existing infrastructure and processing expertise

With a clear path forward and multiple value drivers, AGC represents an opportunity to gain exposure to a potentially significant new polymetallic discovery in one of Australia's established mining regions.

The company's next steps include further optimisation of the sequential flotation process, additional copper recovery test work, and completion of a maiden resource estimate, all of which will provide catalysts for potential revaluation in the coming months.

Want to Learn More About This Exciting Multi-Metal Opportunity?

Discover why Australian Gold and Copper's impressive metallurgical results at the Achilles deposit could position AGC as a significant player in the polymetallic space. For investors seeking exposure to silver, gold, zinc and lead through an advanced exploration story with near-term development potential, follow AGC on X for the latest updates and announcements as they move toward their maiden resource estimation. Click here to follow AGC and stay informed about this compelling investment opportunity in one of Australia's established mining regions.