Breakaway Resources: JV partner BHP Billiton kicks off drilling at 7.5M silver ounce Altia

Some investors are not aware of the Breakaway Resources' (ASX: BRW) joint venture with global mining powerhouse BHP Billiton (ASX: BHP), which is located just 100 kilometres from the 'big Australian's' Cannington mine.

Known as the Altia silver-lead-zinc joint venture, BHP will now commence a three hole diamond drilling program for 2000 metres to test depth extensions to the significant resource already in place - with a focus on testing mineralisation similarities to Cannington.

Previous drilling has highlighted the potential for a large-scale silver deposit at Altia with strengthening silver grades – including an intersection of 19 metres at 286g/t silver (down hole width) – occurring at depth and to the south of the current resource.

Altia already hosts an Inferred JORC Resource of 5.78 million tonnes at 40.3g/t silver, 3.96% lead and 0.49% zinc - for around 7.5 million silver ounces.

David Hutton, managing director of Breakaway, told Proactive Investors today that the Altia core would not look out of place in the Cannington coreyard.

And with Cannington becoming a mature mine, and the ore at Altia similar and within a 100 kilometre trucking distance - the potential for an ore processing agreement is worth considering, especially considering BHP is already known to be looking for additional silver ore.

Hutton added that the Altia ore is similar to the lower grade portion at Cannington, with BHP drill testing to examine if the project has the potential to host a size to be considered a commercial opportunity.

Cannington mine
A brief history of the Cannington mine is that its the world’s largest tonnage and lowest cost single mine producer of both silver and lead.

With annual yields in excess of 30 million ounces of silver and long-term smelter contracts in place, the mine is a multi-million investment for BHP.

This leaves the enticing potential that is BHP has additional drilling success in the new holes at Altia - then Breakaway is perfectly positioned to economically and financially benefit.

The farm-in
The area subject to the Altia farm-in and joint venture agreement lies within Breakaway’s 100% owned Eloise Exploration Project.

Under the terms of the agreement, a 70% interest in the Altia zinc rights can be earned by BHP by spending A$10 million over five years.

This includes a minimum commitment, now satisfied, of $1 million in the first year of the joint venture.

Hutton added that the Altia drilling program was an exciting development for the company which in conjunction with Breakaway’s drilling program currently underway at the wholly owned Sandy Creek copper-gold prospect, 20 kilometres west of Altia, reinforced the prospectivity of the Eloise Exploration Project and surrounding areas.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20255/breakaway-resources-jv-partner-bhp-billiton-kicks-off-drilling-at-75m-silver-ounce-altia-20255.html