MMG Century on track to meet full year production guidance

MMG Century delivered strong production results in the three months to the end of September whilst managing a significant shutdown and program of maintenance works that help position the operation for the future. Planned maintenance and enhancement works were conducted on Century’s concentrate transfer pipeline, processing plant and port operation during a major scheduled outage in July and August. The  three-year project to refurbish Century’s concentrate storage shed in Karumba also entered its final phase during the quarter.

The operation produced 87,008 tonnes of zinc in zinc concentrate and 3,894 tonnes of lead in lead concentrate in the September quarter and remains on track to deliver full year production guidance of between 495,000 to 505,000 tonnes of zinc in zinc concentrate and 22,000 – 25,000 tonnes of lead in lead concentrate in 2012.

These results been enabled through a  series of projects aimed at improving asset utilisation and efficiency across the operation that have been implemented this year. Particular focus has been on increasing throughput at the mine’s processing plant and port facility and gains in these areas have already contributed to the achievement of a production record in the previous June quarter period.

Queensland Operations Manager Mark Adams said that these activities, which would help to further strengthen Century’s safety, cost and production performance, were a credit to the operation’s workforce.

“While the major outage to enable us to safely conduct these works has affected this quarters’ production, year-to-date zinc production was 10% higher than during the corresponding period in 2011. This is due to both favourable weather conditions and strong production during the first half of 2012.”

Another priority during the quarter was to progress work to evaluate options to utilise the operation’s extensive infrastructure following the completion of open cut zinc production in approximately 2016. Near mine exploration work is ongoing to further evaluate a number of smaller vein-style targets within the Century and adjacent mine leases.

Mr Adams said that the scoping study to investigate the potential to process phosphate post-open cut zinc production was also on schedule. “Resource modelling and flotation test work was completed during the quarter, with a reverse circulation (RC) drilling program underway to test the resource evaluation methodology.”

MMG Limited released its Third Quarter Production Report 2012 today.

MMG Limited is a mid-tier global resources company which explores, develops and mines base metals deposits around the world.