Cobar Consolidated Resources is hoping new mill equipment due to be installed in the coming months will continue to improve silver recoveries at the Wonawinta Mine.
The company released its half year operations update last week detailing silver production to date as well as its plans for the coming months.
According to the report, a disintegrator has been installed as part of the mine’s processing plant in an effort to reduce the amount of oversize ore passing through the plant.
Company managing director Ian Lawrence said the disintegrator is being commissioned after higher than expected levels of harder ore were mined.
“Installation of a ball mill is planned in June 2013, which is expected to be the final measure necessary to eliminate all oversize material,” Mr Lawrence reported.
“The ball mill has been purchased and is currently undergoing refurbishment.”
The mine’s gravity circuit is currently being commissioned with initial results showing recoveries of around 10 per cent to produce a concentrate grade of 40 per cent lead.
“This is promising and fine tuning is expected to improve both grade and recovery,” Mr Lawrence said.
CCR has also started a new reverse circulation drilling program to identify higher grade zones within Wonawinta’s current inferred resource.
Mr Lawrence said there is the potential to upgrade parts of the resource from inferred to indicated.
“The program will also test for additional resources along the northern and southern strike extensions of the resource zone.
“The drilling between the Boundary and Manuka pits indicate potential for additional high grade resources.
“Follow up drilling is planned in this area,” Mr Lawrence said.
In the six months ending December 2012 a total of 354,323 ounces of contained silver in doré was produced and 312,112 ounces of refined silver was sold under a contract to a refinery in Switzerland.
“The company passed some significant milestones in the first half of financial year 2013, pouring first silver in July and completing our transition from an explorer and developer to a producer,” Mr Lawrence said.
“We have continued to ramp-up production at Wonawinta while also making significant progress commissioning the mine as we aim for a production rate of 2.3million ounces of silver per annum.”
CCU Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
