Perth, Aug 14, 2008 AEST (ABN Newswire) - Copperco Limited (ASX:CUO)(PNK:CPPWF)("CopperCo" or the "Company") is pleased to report on operational progress at the Lady Annie Copper Project.
Copper Output Expansion Project
Construction activity has progressed on time and on budget. On 8 August 2008 the new Electrowinning section was tied into the existing plant and commissioning is underway. Several sections of the new Solvent Extraction plant were connected to the operating circuit during the shutdown and these unit process items are in commissioning. The new Solvent Extraction plant is scheduled for final connection and start of commissioning during the second week of September, 2008. This will complete the expansion phase for the SX-EW process plant. The engineering and construction team are congratulated on achieving the progress to date.
Extension of the crushing and stacking material handling system and leach pads is scheduled for completion in early September 2008. This will complete the construction associated with the expansion project.
Expanded cathode production from 19,000 tonnes per annum will commence in September 2008, building up to 25,000 tonnes in December 2008 and 30,000 tonnes per annum by June 2009 as the ore inventory under leach builds.
Lady Annie Pit Operations
Pit preparation work has commenced at the Lady Annie ore body ahead of mining operations commencing in September 2008. Ore extraction and delivery to the process plant will build up progressively over the next quarter and Lady Annie ore will then represent approximately 70% - 75% of total ore supply to the process plant for the life of the mine. Estimated average copper ore grades at Lady Annie are higher than the two ore bodies at the Mount Kelly area so head grades to the plant will build to approximately 1%Cu by January 2009 as the proportion of Lady Annie ore fed to the plant reaches target levels.
Construction of the ore haul road from Lady Annie to the process facility will be completed on time to meet the commencement of ore mining.
Diversity of Ore sources
When ore extraction commences from the Lady Annie pit the project will have three sources of ore as the Flying Horse pit is now on an operational footing along with the Mount Clarke pit.
Water Supply Back up
As foreshadowed in the June quarterly report (ASX release 21 July 2008) the long-term stability of the permanent water supply to the mine has been critically assessed in the light of the severe drought conditions prevailing in the region over the past two years. The water supply for the operation is drawn from Lake Waggaboonya, some 50km from the mine. CopperCo has studied the various options available to it to provide backup supply in the event the drought conditions persist.
The company's view is that the backup plan should ensure that 100% of the mine's needs are provided for in any scheme to augment water supply given the difficulty in predicting future rainfall patterns particularly in the dam's catchment area. Over the past few months, the company has been successful in identifying a number of sources of water at varying distances from the main infrastructure at Mount Kelly. The most promising sources are located in and around the Lady Annie mine to the north; and to the south near the Johnson's Creek prospect referred to by the company as the Buckley River project area. Detailed engineering and costing is nearing completion on these two water sources following which a decision will be made on implementing the project.
Should you have any further queries in relation to the above please do not hesitate to contact Brian Rear on (08) 9260 8800.
Contact
Brian Rear
Managing Director
Tel: +61-8-9260-8800
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