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Kimberley Metals Limited Provides Processing Plant Operational Update at Mineral Hill Mine

20.07.2011  |  ABN Newswire
11:10 AEST July 20, 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 processing of ore through the process plant at the Mineral Hill Mine, located 65 kilometres north of Condobolin in central-western New South Wales.

Crushed ore in stockpiles are now being processed through the refurbished plant. Successful commissioning of the processing plant for Stage 1 production at 100,000 tonnes per annum utilising Mill No.1 has been achieved. The crushing, conveying, screening, fine ore bins, Mill No.1, floatation plant and tails system are fully commissioned and in the process of treating first ore supply to produce first copper concentrate. All mechanical and electrical works have been completed and the new process control system is operational. First copper concentrate sales cash flow of approximately A$2.5 million is expected during August 2011.

Stage 2 commissioning work on Mill No.2 has commenced and is on schedule. Full commissioning of the processing plant to 250,000 tonnes per annum is expected to be achieved by end-August 2011.

The successful commencement of ore processing represents a significant change in status for the Company from an exploration and development Company to a producer of copper-silver concentrates.

The refurbishment work that commenced August 2010 has been achieved utilising a dominantly local work force and contractors from the Condobolin area dedicated to returning the Mineral Hill Mine to commercial production.

Remaining works to achieve Stage 2 production of 250,000 tonnes per annum are minor piping works, installation of a larger thickener tank, and electrical commissioning of Mill No.2.


Parkers Hill Underground Mine

Underground development in the Parkers Hill underground mine has now intersected the copper ore zone on 1225 level. Multiple ore drives are now ready for development to maintain ore supply to the process plant for Stage 1 production. Additional high grade ore from stoping is on target to be achieved late August 2011 that will correspond with completion of commissioning of Mill No.2 and full production from the process plant.

Significant achievements are as follows:

- 235 metres of underground development on 1225 level

- Intersection of the copper resource on 1225 level for Stage 1 ore supply

- Completed installation of ground support and establishment of mine services to access the 1190 and 1205 levels for additional ore development

- Additional mining equipment for mine production mobilised to site

- Full mine plan and schedule completed


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
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