2017 start for King Vol zinc

Posted October 6, 2015

Zinc

Atherton Resources aims to begin concentrate production in early 2017 from its King Vol zinc project, 250km west of Cairns.

The company, formerly Mungana Goldmines, began diamond drilling in June to increase the indicated mineral resources – now sitting above a million tonnes - as part of the project’s feasibility study.

Atherton Resources managing director Tony James said development at King Vol would mean great opportunities for local suppliers, as the majority of resources and provisions could be sourced from North Queensland.

“The plan for Atherton is to complete the project feasibility study by March 2016 so that the project can be approved by the board and finance obtained,” he said.

“On approval this then starts a nine-month build program to get the mine and processing plant working.”

It was estimated that up to 250 people would be involved in the project during the construction phase, he said.

The underground operation is expected to cost $37.4 million to start up and deliver 35,900 tonnes of zinc, 840 tonnes of copper, 910 tonnes of lead and 185,000 ounces of silver in concentrate annually after ramp-up.

The project would take advantage of a largely completed base metal concentrator at Atherton Resources’ Mungana site.

King Vol is part of Atherton Resources’ Chillagoe project, covering of 607sq km of land containing zinc-dominated base metal resources at King Vol and Red Cap, and gold-copper resources at Red Dome and Mungana.

The company launched its North Queensland zinc strategy in July 2014 after the announcement of its acquisition of the Chillagoe base metal assets from Kagara (in liquidation).

Mr James said Atherton Resources could see tremendous opportunity in zinc mining in the area and that King Vol should come online during a high in the zinc price cycle.

The closure of significant zinc producing mines in the world this year -Century in Australia and Lisheen in Ireland - was expected to drive the prices up, he said.

“There are limited zinc companies listed on the ASX and in the predicted zinc cycle the well-advanced new zinc operations like Atherton at Chillagoe are in a great position to take full advantage of what is expected to be a rebounding market,” Mr James said. “This is highlighted by the obvious corporate interest in Atherton Resources in recent months.”

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