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MMG reports solid zinc production at Century and further progress at Dugald River

MMG Limited (MMG) released its third quarter 2015 production results today, reporting solid zinc production at Century in its final year and further progress at its Dugald River development project.


Century produced 93,062 tonnes of zinc in zinc concentrate during the third quarter, 20% lower than the previous quarter primarily due to lower milling ore grades in the final stage of the open pit.

After 16 years of operation, the final ore was extracted from the Century open pit in August.

MMG CEO Andrew Michelmore said that the completion of mining at Century, located in north-west Queensland, marked the end of an era for MMG as well as the global mining industry.

“Throughout its life, Century has been one of the largest zinc mines in the world, accounting for approximately 4% of total global supply at its peak. Century has made a significant contribution to MMG and the region during its 16 years of operation and I extend my gratitude to all involved over the life of mine.

“The completion of Century production in 2015 will further impact shrinking global zinc supply at a time of increasing global demand. This supports our decision to invest in one of the world’s highest grade undeveloped zinc deposits at Dugald River.”

Production of 31,064 tonnes of lead in lead concentrate during the third quarter was 28% higher than the previous quarter, due to higher ore grades and lower milling rates assisting to maximise recovery.

Dugald River

Early works and pre-production mine development continued at Dugald River during the quarter, following approval of the updated project plan in July.

The updated plan for Dugald River includes a mine production rate of 1.5 million tonnes per annum, construction of a concentrator and annual production of approximately 160,000 tonnes of zinc in zinc concentrate, plus by-products, over an estimated 28 year mine life.

First concentrate production is expected from Dugald River, which is located approximately 65 kilometres north-west of Cloncurry, during the first half 2018.

During the third quarter, 1,592 metres of development was achieved across both the North and South mines. To date, total underground mine development has exceeded 20,000 metres with more than 52,000 metres of diamond drilling completed.

Following the completion of Century production, MMG will process approximately 450,000 tonnes of ore stockpiled during the 2014 trial stoping program its Dugald River project on the Century circuit. Processing of Dugald River ore will continue at Century into 2016.

Approximately 296,600 tonnes of Dugald River ore has now been stockpiled at Century in preparation for the processing using the operation’s existing infrastructure. Transportation of Dugald River ore by road to Century commenced in May.

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