Kimberley Metals Limited Commence Process Plant Commissioning at Mineral Hill Mine

10:04 AEST June 27, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.

Sydney, Australia (ABN Newswire) - Kimberley Metals Limited (ASX: KBL) is pleased to report the start of commissioning of the process plant at the Mineral Hill Mine, located 65 kilometres north of Condobolin in central-western New South Wales.

Crushing of development ore has been achieved to the fine ore bins in preparation for first ore feed to the mills. Commissioning of the primary crusher, secondary crusher, conveyors and interstage screen, and Mill No.1 has been completed. Commissioning is on target with the mining schedule to achieve first copper concentrate production in early July.

The Company has been engaged in refurbishing and modernisation works at the processing plant at Mineral Hill, since August 2010 in preparation for a recommencement of production from the mine initially with the production of copper concentrates. Mechanical refurbishment of the plant is approaching 100% complete. Minor piping in the flotation area and electrical installations remain to achieve full plant availability for production of copper concentrates.

\'The start of commissioning work at Mineral Hill is a credit to the strong, predominantly local, team of tradesmen and professionals focused on delivering the Company to the status of producer on time and on-budget expectations. This is an important step forward for the Company\', said Mr Jim Wall CEO and Chairman.

Works completed since the last update to ASX are as follows:

- 20 new flotation cells installed. Mechanisms and motors installed. Electrical installations nearing completion.

- Mill 1 & 2 automated lubrication system installed and commissioned

- In-Line Analyser has been successfully installed

- New cyclone structure completed and installed

- Trash screen motors installed and tested

- Process pipework completed across plant

- All process reagents and mill balls to achieve first production have been purchased and delivered to site

- Commissioning team for the process plant has been established and is at site

- All plant operators and shift supervisors have commenced work and presently undergoing workplace training

Remaining works to achieve full plant availability are mainly electrical upgrades in the flotation area to meet Australian Standards and to complete installations of the Main Control Cabinet (MCC) and Process Logical Control (PLC) system.
The refurbished mill is expected will have a capacity of 250,000 tonnes per annum, up from the previous 200,000 tonnes per annum capacity.

Parkers Hill Underground Mine

Key underground mine works completed to date are:

- 168 metres of development completed on the 1225 level Access Drive. Development is now within 30 metres of the high grade copper ore zone. On schedule and budget

- All ground support by bolting and meshing of the decline drive completed

- All underground mining equipment mobilised and operational at site

- Mining schedule and mine plans completed Kimberley will provide further announcement on commissioning status and first production of copper concentrates in coming weeks.


About Kimberley Metals Limited:

Kimberley Metals Limited (ASX: KBL) is an Australia-based company and primarily involved in mineral exploration and resource investment. The Company's operations include Mineral Hill Mine, Pearse Gold Project, Parkers Hill, Sorby Hills Project and Constance Range Iron Ore Project.



Contact:

Jim Wall
Executive Chairman
Kimberley Metals Limited
Tel: +61-2-9927-2005
http://www.kimberleymetals.com.au