HIGHLIGHTS
Production & Operations
- 121% increase in zinc production to 15,709t (Q3: 7,119t) at a reduced cash cost of US$0.74/lb.
- Copper production of 5,933t (Q3: 6,767t) at a reduced cash cost of US$1.79/lb.
- Strong improvements in mining and processing across all base metal production centres.
- Strong cash operating margins of US$2.07/lb for copper and US$0.26/lb for zinc.
- Total concentrate stockpiles at Quarter-end of 20,517t (Q3: 16,329t), valued at ~$21M.
- KZL Business Improvement team established.
Project Development
- Preparations commenced to mine Baal Gammon copper deposit.
- Concept studies continued to develop a new decline between Mungana and Griffiths Hill.
- Approvals commenced to develop the King Vol zinc deposit at Chillagoe and West 45 deposit at Thalanga.
Exploration
- $23M exploration budget set for FY12 throughout Queensland aimed at establishing 8-12 year production outlook for zinc + copper in each operating region - four drilling rigs now operating.
- 3 of 4 holes completed to date at King Vol intersect moderate-to-high grade zinc mineralisation plus copper.
- CY11 Exploration Target of 5Mt @ 10-15% Zn established for King Vol.
- New zone of Zn-Cu mineralisation intersected over 1.1km strike at Red Cap/Morrisons.
- Maiden Inferred Resource of 32,000t of copper for Griffiths Hill.
- New copper reserve completed for Balcooma, replacing FY11 production depletion.
- Updated resource estimate completed for the West 45 deposit at Thalanga.
- 27.2m @ 7.3% Ni returned from underground drilling at Lounge Lizard.
Corporate
- Agreement with Monto Minerals to mine and process the Baal Gammon copper deposit.
- Conditional offer to acquire the Einasleigh Copper Project from Copper Strike.
- Rothschild engaged as advisor for the Admiral Bay Zinc Project.
- Restructure of senior management team commenced with establishment of Executive Committee (ExCo) and key appointments.
Financial
- Consolidated cash of $56.5M at the end of the Quarter, plus receivables of $24.3M.
