Alcyone Resources (ASX: AYN) has poured the first silver bullion from the recommissioned Texas Silver Project in south-east Queensland, following re-irrigation of existing silver-rich heaps at the Twin Hills mine. The silver rich solution from the leach pads was processed using the pilot scale Merrill Crowe circuit at site, confirming the viability of the proposed long-term process flow sheet. This first batch of silver bullion will now undergo final refining, with Alcyone estimating that the batch will deliver more than 15,000 silver ounces, and an early cash flow boost. With spot silver currently trading at around US$36, the gross value of the first silver pour is US$540,000. Alcyone said the company is on track to commence full-scale commercial silver extraction in the September Quarter of 2011, at an annualised rate up to 2 million silver ounces. Alcyone unit cash operating costs are forecast at around A$15 an ounce, providing a healthy margin against the current spot price. The leach pads at Twin Hills contain an estimated 400,000 tonnes of material, partially leached by the previous operation. Preliminary test work indicated the average grade of the material on the heaps ranges from 30 grams per tonne (g/t) silver to 100g/t silver. The Twin Hills JORC Resource currently stands at; 3.8 million tonnes at 83g/t silver for 10.2 million ounces. Importantly 85% of the resource is in the higher confidence Measured and Indicated categories.

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