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MMG’s Dugald River project is now around 73% complete and is progressing favourably against the target for first production in early 2018, according to the second quarter 2017 production report.
MMG said key milestones included the start production stoping, completion of power distribution energisation and completion of the tailings storage facility and reclaim and utility areas.
MMG said the raw and potable water systems have been commissioned, and dry commissioning of grinding and tailings motor control centres has been completed.
They said ore stockpiles continue to build in readiness for commissioning and ramp up with 134,200 ore tonnes having been brought to surface during the quarter and lateral development of 2671 metres was completed during the quarter.
MMG has begun a recruitment process for surface operations and maintenance personnel across Townsville, Mount Isa and Cloncurry.
The expected total capital cost to project completion is consistent with previous guidance of US$600-620 million plus interest costs.
Dugald River is positioned to be within the world’s top ten zinc mines when operational, with annual production of around 170,000 tonnes of zinc in zinc concentrate, plus by-products.
The mine will operate over an estimated 25 years.
MMG expects to achieve C1 costs of US$0.68-0.78/lb when at a steady state of operation.
This article first appeared on www.northweststar.com.au
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