MMG Limited (MMG) (HK.1208) today released its third quarter production report with a 32% increase in year-to-date copper production compared with 2012.
MMG Chief Executive Officer Andrew Michelmore said, “We are pleased to report that our Sepon and Kinsevere operations achieved quarterly copper production records, both exceeding designed nameplate capacity on an annualised basis.”
“The strong performances of these operations highlight significant efforts to improve productivity across MMG’s portfolio,” he said.
Sepon produced 23,548 tonnes of copper cathode and in addition to its quarterly copper production record, also achieved year-to-date records in total copper ore mined, milled and sold.
Kinsevere produced a total of 16,095 tonnes of copper cathode, a 44% increase on the same period last year due to higher throughput and a stable electricity supply enabled by the use of diesel generators.
“MMG was pleased to announce during the quarter that we had acquired exploration and mining rights over eight tenements adjacent to our Kinsevere operation,” said Mr Michelmore.
“These tenements are located within a 50-kilometre radius of Kinsevere, representing a strategic opportunity to expand our near-mine exploration activities in this highly prospective region,” he said.
Golden Grove also contributed a strong performance during the third quarter with copper concentrate production of 11,406 tonnes, up 50% on the second quarter. Golden Grove mining activity continues to focus on copper over zinc in 2013 with ore being sourced from the copper oxide open pit and lower grade underground mining.
Despite the record mining performance of Century, zinc production continues to be impacted by lower grades.
Rosebery zinc production was 5% higher than the previous quarter and 47% above the same period last year, benefitting from consistent throughput and optionality created from multiple ore sources.
Lead production was higher than all comparable periods with quarterly and year-to-date production and sales records achieved at Century.
MMG remains on track to deliver annual guidance of 170,000–185,000 tonnes of copper and 572,000–590,000 tonnes of zinc in 2013.
Dugald River project
At MMG’s Dugald River project in Queensland, Australia, underground mine development continued to advance ahead of schedule, with two exploration declines in excess of 10,100 metres at the end of September 2013. Construction of the main site access road remains on schedule with important work commencing on the Dugald River Bridge. The 100-person construction camp was also completed in August.
The transportation of 95,000 tonnes of Dugald River ore to Century was successfully completed in August. The five-day campaign to process this ore occurred in October producing 6,050 tonnes of zinc in zinc concentrate and contained an average of 50.8% zinc, 1.6% lead and 1.6% manganese.
MMG announced on 18 September that it had deferred most surface work activities while it completes its project review. The deferral includes the suspension of bulk earthworks, the construction of the permanent accommodation camp and suspension of the engineering, procurement and construction of the processing facility.
Initial findings of the preliminary review indicate that alternative mining methods are required with additional analysis to be undertaken to further optimise the mining methods. The Board will consider the final review and the results from the trial ore processing in making an investment decision regarding the development of the Dugald River project.
It is unlikely that the previously announced schedule of a first concentrate shipment in late 2015 will be achieved.
For further information please refer to the MMG Limited Third Quarter Production Report 2013.
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