Third Quarter Production Results
MMG Limited today announced its Third Quarter 2017 Production Result producing 147,888 tonnes of copper in the three months to September, a 4% increase on the June quarter. This increase was driven by record quarterly output at Las Bambas and the second strongest quarter of production at Kinsevere.
The Dugald River zinc project is now 89% complete and is on track for first production by the end of 2017. The total development cost is now expected to be between US$550-$570 million, significantly lower than previous guidance of US$600-$620 million.
“With construction of Dugald River nearing completion, I am particularly proud of the team,“ MMG CEO Jerry Jiao said. “Their dedication and focus will deliver first concentrate ahead of schedule and into a market of tightening supply and rising prices.”
MMG expects to produce 560,000–615,000 tonnes of copper and 65,000–72,000 tonnes of zinc in 2017.
Mineral Resources and Ore Reserves Statement as at 30 June 2017
MMG Limited also today released its Mineral Resources and Ore Reserves Statement as at 30 June 2017.
Excluding Golden Grove, which was divested in the first quarter of 2017, Mineral Resources (contained metal) decreased for copper (-8%) and zinc (-1%) and Ore Reserves (contained metal) increased for zinc (35%) and decreased for copper (-5%).
The lower Mineral Resources and Ore Reserves for copper are primarily attributed to Las Bambas, where the focus over the past 12 months has been on mine ramp up and the delivery of payable metal production. An accelerated drilling program will focus on Mineral Resource extension and the conversion of Mineral Resources to Ore Reserves into 2018.
“Las Bambas offers significant exploration potential with approximately 10% of the mining lease explored to date,” said Mr Jiao. “Near mine exploration remains a priority and we maintain active drilling programs at all of our operations.”
The increase in zinc Ore Reserves is primarily due to the successful drilling program at Dugald River as the Company moves toward first production later this year.