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MMG on track at Dugald River and Century for 2013

MMG Limited continued to progress development of the Dugald River zinc-lead-silver deposit during the first quarter of 2013, with the project on track to deliver the first concentrate shipment during the fourth quarter of 2015.

Underground mine development achieved 6,090 metres at the end of first quarter, 30% ahead of schedule. Surface works were also a focus with the construction of stockpile pads and bulk earthworks for the process plant area.

MMG General Manager Queensland Operations Mark Adams said that the project had made good progress during the quarter

“Mine development will remain a priority during 2013 as we work to optimise our operating plans for the underground mine. We are also investigating the opportunity to trial Dugald River ore on the Century circuit to better understand recoveries to optimise plant design.”

“At MMG’s Century mine, also located in Queensland’s north-west, zinc in zinc concentrate production for quarter was affected by lower feed grade due to progression through the final stages of the mine plan. This resulted in a 21% reduction in production when compared to the first quarter of 2012.”

Despite lower than expected production during the first quarter, Century’s annual production guidance remains 480,000–490,000 tonnes of zinc in zinc concentrate.

Mr Adams said a program of improvement works underway to sustain higher throughput rates and recovery would assist the mine to achieve its 2013 production target.

“The program of improvement works to offset lower feed grades began in late 2012, with initial plant upgrades completed during the first quarter. The program is already delivering results and we expect to realise its full benefits by the end of 2013.”

MMG received an indicative non-binding commitment from China Development Bank Corporation (CDB) to arrange and underwrite financing of Dugald River development in late March. Interim funding was approved by the Board of MMG to enable development and construction activities to continue until project financing is finalised, which is expected during the second quarter of 2013.

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

For further information please refer to the full MMG Limited First Quarter Production Report 2013.