Dugald River Project Gets Development Go-ahead
The MMG board also gave the com-pany or its subsidiaries approval to enter into major contracts for gas supply, power genera-tion, and rail haulage, to advance the project.
Expenditures at Dugald River through mid-December totaled A$293 million, with an estimated A$1.2 billion in additional funding required, excluding working capi-tal, to take the project to first shipment of concentrate.
Dugald River is located about 235 km southeast of MMG’s Century zinc-lead-sil-ver mine, which currently produces about 500,000 mt/y of zinc in concentrate. Century mine life is currently expected to end in 2016.
Dugald River will process an average of 2 million mt/y of ore to produce 200,000 to 220,000 mt/y of zinc in concentrate, 27,000 to 30,000 mt/y of lead in concentrate, and 0.9 million oz/y of silver in concentrate.
The project will be developed as an underground mine accessed by two declines. Run-of-mine ore will be hauled to the surface for treatment through an on-site concentrator.
Zinc and lead concentrate will be trans-ported by road to Cloncurry. A rail load-out facility will be constructed at Cloncurry, from which concentrate will be transported via rail to Townsville, Queensland, where it will be shipped or sold to local smelters.
The Dugald River project is scheduled for commissioning in 2015, with first ore feed expected in the third quarter of that year. Based on MMG’s current estimates, first concentrate is expected to be shipped in the fourth quarter of 2015.
The Dugald River project has a resource of 53 million mt, grading 12.5% zinc, 1.9% lead, and 36 g/mt silver.