Shares in Cannington Mine owners South32 fell after annual production of many commodities dropped. Bad weather and challenging conditions impacted South32’s performance in FY17. Cannington recorded a decrease in silver, lead and zinc production and a significant decrease in ore grades and metal production as high grade stope 60L was only partially extracted in the June quarter and run-of-mine stocks were consumed to support processing rates following a fire in April.
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The company said the rate of deformation within the existing crusher has increased and is now expected to be inoperable in the September quarter.
They said a replacement crusher would be commissioned in the March quarter with 90% of FY17 mining rates to be maintained in the interim with shaft haulage raplced by additional trucking.
Cannington is also adjusting the stope sequence in the mine to re-establish above ground stocks.
They say average silver and lead feed grades will be maintained in FY18 though average zinc feed grade will decline.