Kimberley Metals Limited (ASX:KBL) Progress Towards Production At Mineral Hill Mine
Sydney, May 31, 2011 AEST (ABN Newswire) - Kimberley Metals Limited (
ASX:KBL) is pleased to report on progress for production start up at the Mineral Hill Mine, located 65 kilometres north of Condobolin in centralwestern New South Wales.
The Company has been engaged in refurbishing the processing plant at Mineral Hill, since August 2010 in preparation for a recommencement of production from the mine with first production targeted for mid-2011.
Kimberley's development plan for Mineral Hill contemplates the development of both the Parkers Hill underground copper-lead-zinc mine and the Pearse open-cut gold-silver mine. The Mineral Hill plant will have two process trains, allowing the treatment of gold-dominant ores through a carbon-in-leach (CIL) circuit and base metal ores through a flotation circuit. Work on the CIL circuit will start after commencement of copper concentrate production.
First production of copper concentrates from the Parkers Hill underground mine remains on-target. All regulatory and operating approvals are in place.
The Environmental Impact Statement (EIS) and development consent application for the Pearse Gold and Silver Project has been submitted to the Lachlan Shire Council and public coments have been sought. Project approvals are expected late September/October 2011.
Parkers Hill Underground Mine
Kimberley has appointed mining contractor Pybar to provide underground mining services at Parkers Hill with a formal contract pending.
Key works to date are:
- All ground support by bolting and meshing of the decline drive completed
- The development Jumbo and underground mine truck have been mobilised to site and are in full operation
- First mine drive development on 225mRL commenced 6 May 2011 and approximately 45 metres advance have been achieved. The development (185 metres )will provide fresh ventilation for stoping activities and multiple ore drive accesses.
- Pumping capability for increased dewatering has been established to access mine levels for exploration drilling below 180mRL
- A license to store explosives has been approved by WorkCover and the explosives magazine is fully operational
The following works remain to be completed prior to initial ore production, which is anticipated at midyear.
- Completion of minor ground support by bolting and meshing in selected ore drive accesses on 180mRL, 190mRL, and 210mRL. Ore drive development from these levels will contribute to initial ore supply for the process plant.
- Completion of development at the 225mRL level.
- Development works associated with the first stope to be established between the 180mRL and 225mRL levels.
- Estimation of ore reserves. Design works are nearing completion and a public announcement of reserves is pending which will include the a life-of-mine production profile.
Processing Plant
The process plant refurbishment and modernisation works are now 95% complete. The work program has had the benefit of an experienced local workforce with the assistance of contract technical expertise only as required. The works are on budget expectations and schedule.
The ore feed bin, primary and secondary crushers, feed chutes, crusher motor, interstage screen, conveyors 1, 2, and 3; working platform above the fine ore bins, and structural steel installation from the crushers to the mills has been completed. Details of this work have been reported previously.
Works in-progress and nearing completion are as follows:
- Twenty new flotation cells built with installation well advanced.
- Mill 1 has all new bearings and new grease system installed
- New girth gear and pinion bearing for Ball Mill 2 arrived at site as scheduled and has been fully installed and aligned
- New gridmesh walkways, handrailing, and guarding for the crushers, interstage screen, and flotation area completed to current Australian Standards
- New belt feeders from for the fine ore bins have been manufactured, delivered to site and installed
- New structural supports for the flotation platform have been completed. The flotation area now has 25% additional flotation cells.
- In-Line Analyser has been ordered with delivery expected mid-June 2011 in time for plant commissioning.
- New cyclones have been ordered and expected to arrive site July 2011
- The PLC has been installed for the crushing and screening circuit
- Recruitment: Key positions appointed are as follows:
General Manager;
Mining Manager;
Process Manager;
Senior Planning Engineer;
Mine Geologists;
Surveyor;
Safety Coordinator;
Administration Coordinator and administration assistant;
Warehouse and purchasing officers;
Plant mechanical workforce has been assigned to process plant refurbishment works since August 2010 and will transfer to operations on commissioning late June/early July 2011;
A plant commissioning team has been selected under the management and supervision of the Process Manager;
Recruit remainder of operations workforce to fill some 30 positions. Process operators have been interviewed and offers of employment have been issued.
- The refurbished mill is expected to have a capacity of 250,000 tonnes per annum, up from the previous 200,000 tonnes per annum capacity.
Pearse Open Cut
The Environmental Impact Statement for the development of the open cut mine and associated activities at the high grade Pearse gold-silver deposit has been completed and formerly submitted to the Lachlan Shire Council and regulators. Once development approvals are in place, a program will be developed to co-ordinate the prestripping of the open cut and upgrading of the CIL circuit at the Mineral Hill plant.
A further progress report will be provided as commissioning of the process plant commences.
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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