KBL Mining on strong production footing at Mineral Hill
Date
2/16/2013 2:34:33 AM
(MENAFN- ProactiveInvestors - Australia) KBL Mining (ASX:KBL) has continued its strong production performance following the setting up of a new operational plan focusing on traditional Mineral Hill copper-gold ores in New South Wales.
The new mine plan is focused on mining of traditional Mineral Hill lode style copper-gold ores continues with the aim of reversing the underperformance in September through November last year.
KBL has been implementing a revised medium term mine plan at Mineral Hills to redirect production away from the problematic Parkers Hill polymetallic orebody towards the traditional gold copper and copper gold lode style orebodies that have provided all historic production at the mine.
A detailed three month rolling mine plan is now delivering consistent copper-gold ore from the first of these orebodies, Red Terror into the plant generating a material improvement in production performance.
Mining within Red Terror has been defined until August 2013, with ongoing underground drilling to extend the Red Terror mine plan into 2014.
Ore from Red Terror have resulted in copper recoveries averaging 92% over this period, a substantial improvement on the December quarter at 72%.
Production since the start of December 2012 has generated 1,100 tonnes of copper in concentrate with increasing gold and silver content. Production during the entire December 2012 quarter was 861 tonnes of copper in concentrate.
A resource update likely in March is being prepared with underground drilling on two parallel lodes to expand the Red Terror resource underway.
Initial results indicate that these parallel lodes have a higher gold to copper ratio, with the potential to produce a higher value concentrate product. Adjacent underground development will allow easy access to these new lodes.
Surface reverse circulation drilling is currently focused on the high gold GD140 prospect and the Missing Link copper-gold target. GD140 and Missing Link are also located near to existing mining infrastructure.
Both visual and hand held XRF results to date support and expand on historical exploration results. Drilling results are expected within two weeks and will be followed by resource estimates for both areas.
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