Rex finds low-cost, staged pathway for Hillside copper-gold project on Yorke Peninsula Rex Minerals' Hillside copper project on SA's Yorke Peninsula. SA explorer REX Minerals has identified a way to develop its Hillside copper-gold project on the Yorke Peninsula in a "staged manner" at an upfront cost which is less than half of its original, approved $900 million plan. The plan "ultimately arrives at the same large-scale project as originally planned" executive chairman David Carland told shareholders at its annual meeting held in Victoria. SA-based Rex Minerals has won State Goverment approval for its previous proposal for a 15 million tonne per annum operation, near Ardrossan, with 99 conditions attached. "Given tough conditions in the capital and commodity markets, your board concluded that the capital exposure, associated risk and cost of management of the large-scale Hillside project became unacceptable," Mr Carland said. An extended feasibility study to explore options is being led by an advisory board chaired by founding chief executive Steve Olsen. While definitive outcomes had not yet been reached, Mr Carland shared information on the work in progress on the study. The feasibility extension covers alternative design, mining methods, haulage, processing and shipping options for a smaller, low capital-intensive project. Rex has now reviewed a range of copper/gold only start-up options, which can stand alone and then be expanded. The next stage is to complete more detailed design work and mine scheduling required to evaluated the funding options for a staged development. An update will be provided in the new year, but Mr Carland said ongoing discussions with potential funding sources "continue to confirm that an appetite for Hillside financing exists." Commenting on the community protests against the project, he told shareholders the company had actively engaged with locals since 2008. He said formal consultations have taken place since 2011 and more than 350 community engagement activities, meetings and events have been undertaken. At every stage, Rex has sought to address and put into context community concerns regarding potential impacts. There are a number of existing, open pit, mining operations on the Yorke Peninsula.... much closer to local townships than Hillside. Some community groups have called on the State Goverment to restart the approval process. Minerals & Resources Minister Tom Koutsantonis has said the lease "strikes the right balance between environmental and economic priorities." The mining lease includes a significant number of stringent terms and conditions to ensure the environment and amenity of the area is protected and preserved. While Mr Carland thanked former chief executive Mark Parry who left the company in August without specifically naming him - and other employees who left as a result of a restructuring program - he did not update shareholders on the search for a new chief executive. The Hillside Mining Lease covers an area of just under 3,000 hectares of the 470-540,000 hectares of Yorke Peninsula under crop annually. To mine, Rex will still need a plan drawn up in consultation with the community - a Program for Environment Protection and Rehabilitation.