Apr 19, 2019

Strong zinc performance at Cannington mine

Strong zinc performance at Cannington mine

South32 has reported a nine per cent increase in payable zinc equivalent production at its Cannington operation in North-West Queensland in the nine months to March.

The quarterly report released this week indicated an output of 140,100 tonnes payable zinc equivalent in that time.

This came as silver and zinc grades improved in accordance with the company’s expectations and mill throughput continued to track to plan, South32 said.

Payable silver production was up eight per cent in the same time, the report showed.

However it reported lower silver, lead and zinc sales in the most recent quarter due to the flooding that caused an extended outage of a the rail line connecting he operation to the Port of Townsville.

Production guidance for the 2019 financial year remains unchanged at 188,100 tonnes (silver 11,750koz, lead 98.0kt and zinc 51.0kt).

South32 said the disruption to rail had been successfully mitigated by temporary road haulage, at minimal incremental cost.

The company also reported it had commenced a drilling program at the
Eagle Downs metallurgical coal project in Queensland’s Bowen Basin.

South32 assumed operational control of the project last year after signing a deal with BaoWu Steel Group subsidiary Aquila Resources.

Eagle Downs is located about 25km south-east of  Moranbah and down dip of BMA’s Peak Downs mine.

“We commenced a drilling program at the Eagle Downs Metallurgical Coal project to further support the completion of the feasibility study ahead of a final investment decision scheduled for the December 2020 half year,” South32 reported.

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