Kimberley Metals Limited (ASX:KBL) Announces Dual Track Development To Accelerate Production Timetable At Mineral Hill Mine
Sydney, Nov 4, 2010 AEST (ABN Newswire) - Kimberley Metals Limited (
ASX:KBL) are pleased to announce the decision, taken at a Board Meeting held at Mineral Hill in central New South Wales this week, to adopt a dual track approach to the re-development of the Mineral Hill mine. This decision has been taken in order to minimise the time to initial production, targeted for mid-2011.
The dual track approach will see simultaneous development of the Pearse open pit gold/silver mine and the Parkers Hill underground copper mine. Ore from both mines will be processed at the existing Mineral Hill process plant, for which refurbishment is well underway. The Mineral Hill plant has two process trains, allowing the treatment of both gold-dominant ores, through a carbon-in-leach circuit, and base metal ores, through a flotation circuit.
Kimberley Chairman, Jim Wall, said: "our earlier plans had been based on a sequential development with Pearse gold/silver ore beaing treated first, over a period of approximately 18 months, followed by treatment of the high grade parts of the Parkers Hill deposit. However, a reassessment of the Parkers Hill resource and the subsequent development of a mining plan for that deposit (for which underground access on three levels has previouslty been developed), demonstrates that Parkers Hill ore can be available for treatment prior to Pearse ore. This new plan will bring forward the initial cash flow from the Mineral Hill operation, for the benefit of our shareholders."
The mine plan for the Pearse deposit indicates a reserve 52,300 ounces of gold and 542,300 oz of silver (see details in September 2010 Quarterly Activities Report) to be mined over an 18 month period. Recovery of metal will be in both dore and concentrate form. Production from Parkers Hill is anticipated to be approximately 4,000 tonnes of copper-in-concentrate per annum (with by-product lead, zinc and silver) over a minimum five year mine life taking Mineral Hill production out until at least the end of 2017.
Considerable potential remains for the discovery of additional gold and base metals resources at Mineral Hill.
About KBL Mining Ltd
KBL Mining Ltd (ASX:KBL) is an Australian resource Company listed on the ASX with a focus on producing precious and base metals. KBL's main assets include the Mineral Hill copper-gold-silver-lead-zinc mine near Condobolin in New South Wales and Sorby Hills lead-silver-zinc project in Western Australia. The Company has been operating the refurbished processing plant at Mineral Hill since October 2011 to produce copper-gold concentrates and in 2013 commenced producing a separate lead-silver concentrate. Sorby Hills (KBL holds 75% with Henan Yuguang Gold & Lead Co. Ltd (HYG&L) holding 25%) is a large near surface undeveloped silver-lead deposit close to port infrastructure and a short distance from Asian markets.
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