MMG Limited released its second quarter 2015 production results today, with Century delivering stable zinc production during its final full quarter of mining.
Century produced 116,197 tonnes of zinc in zinc concentrate during the second quarter, 11% higher than the previous quarter and 5% higher than the same period in 2014. This contributed to total production at Century of 221,049 tonnes of zinc during the first half 2015.
General Manager Australian Operations Rick Watsford said that this result was primarily due to increased mill throughput while the zinc ore grade had remained stable in the final stages of mining.
“Production at Century remained consistent during the second quarter, primarily due to increased mill throughput. However milling rates have now been reduced to maximise recovery to assist in offsetting lower ore grades.
“Mill feed grades from Stage 10, the final stage of Century open-pit, have averaged 7.9% zinc – while this grade is within expectations it is lower than average grade from Stage 8 of 8.7% zinc.”
MMG will complete mining from the Century open-pit in July with final production from Century mined ore now expected during the fourth quarter 2015.
First half lead production of 37,300 tonnes of lead in lead concentrate was 10% higher than the same period in 2014 with the increased mill throughput offsetting lower lead grades in the final stages of mining.
Lead reclamation from the lead storage dam will continue in the third quarter 2015 with concentrates transferred to Century’s Port facility for shipment via the pipeline.
Annual zinc guidance is unchanged and MMG expects to produce 320,000 – 370,000 tonnes of zinc at Century during 2015. Annual lead guidance has been revised to reflect lower grades during the final stages of mining and MMG now expects to produce 60,000 – 70,000 tonnes of lead at Century during 2015.
Dugald River
MMG is considering the updated development plan for Dugald River, which was prepared during the first half following completion of the 2014 trial stoping program and various project studies.
The updated development pathway for Dugald River is likely to include lower annual throughput over a longer mine life and a simplified logistics chain. All options continue to be considered with the objective of maximising long-term shareholder value.
MMG Chief Executive Officer Andrew Michelmore said, “We continue to expect a decision regarding the development pathway for Dugald River during the September quarter.”
In May, MMG also commenced the road transportation of 450,000 tonnes of stockpiled Dugald River ore to Century for processing following the completion of Century open-pit ore production. 86,188 tonnes of this ore had been transported to Century as at the end of June 2015.
This batch of Dugald River ore was stockpiled during the 2014 trial stoping program at the site.
Processing of this batch of ore at Century will enable MMG to further understand how Dugald River ore performs under large-scale processing. It will take approximately four to six weeks to process this volume on the Century processing plant.
Century’s 2015 production guidance excludes Dugald River ore that will be processed later this year.
(Ends)
Media enquiries
Edward (Ted) Woodruff
Manager, Stakeholder Relations Australia
T +61392844256
M +61 407 434 329
E edward.woodruff@mmg.com
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