MMG Limited says the development of the Dugald River project north of Cloncurry is now over 58% complete and remains on track to achieve production of first concentrate in the first half of 2018.
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Key milestones during the quarter were completion of 1737 metres of lateral development and 6518 metres of diamond drilling.
All process plant flotation, crushing and reclaim area equipment and steelwork have been installed, and the 220kV transmission line and substation has been commissioned to enable energisation.
Starting ore stockpiles are being built up in readiness for commissioning and ramp up.
MMG said the expected total capital cost to project completion remains within previous guidance of US$600-620 million1 plus interest costs.
Dugald River is positioned to be within the world’s top ten zinc mines when operational, with annual production of around 170,000 tonnes of zinc in zinc concentrate, plus by-products.
The mine will operate over an estimated 25 years while the ore body remains open at depth and MMG expects to achieve C1 costs of US$0.68-0.78/lb when at a steady state of operation.
The news came as MMG announced its first quarter 2017 production result last week producing 147,882 tonnes of copper and 19,146 tonnes of zinc in the three months to March.