Xstrata Zinc announced that it has started ore production, which is well ahead of the actual scheduled date, at the Lady Loretta mine located in Northwest Queensland, Australia. Initial delivery of lead-silver-zinc ore will happen shortly.
The company is advancing the production and also developing the underground mine that contains lead, silver and zinc. In mid-2013, Xstrata will commence commercial mining at the Lady Loretta mine and complete production has been calculated to be 1.2 Mt of ore annually. This commercial mining program is anticipated to deliver net increase in the yearly zinc production of 20% for Mount Isa operations. In addition, 230 permanent jobs can be generated upon full-scale production.
Xstrata Zinc Australia’s COO, Brian Hearne stated that this project gains significance in the company’s production profile and the early start of production ahead of the planned date is indeed a great success.
The Lady Loretta deposit includes approximately 12.7 Mt reserve, which comprises 4.8% lead and 14.2% zinc grade along with 84 g/t silver. The amount of lead and zinc metal contained is calculated at 610 kt and 1,803 kt, respectively over 12 years of mine life.
The company has started the Lady Loretta project construction, 140 km towards the north western part of Mount Isa during July 2011. The initial ore production at the project was expected to begin by end of next year. Later, a decision was made in May 2012 to speed up the mine development by expanding the upper ore bodies of the deep underground resources and raising the production rate of ore from 1.0 to 1.2 Mt per year.
The ore taken from Lady Loretta will undergo primary crushing on site and will then be sent for processing to the company’s Mount Isa complex. Later, this ore will be mixed with the ore obtained from Handlebar Hill Open Cut and Black Star Open Cut mines and the George Fisher underground mine. The high-grade ore from Lady Loretta can potentially increase production of metals and average grades, and help enhance cost efficiencies in the North Queensland business.
The company will shortly complete the construction of office buildings for administration and mining team.
Source: http://www.xstratazinc.com/
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