Fourth Quarter Activities Report
Document date:
Tue 21 Jul 1998
Published:
Tue 21 Jul 1998 00:00:00
Document No:
119072
Document part:
D
Market Flag:
Y
Classification:
NORMANDY MINING LIMITED 1998-07-21 ASX-SIGNAL-G HOMEX - Adelaide +++++++++++++++++++++++++ METALS At Golden Grove, mill throughput increased 15% and included an initial 51,000 tonnes of Gossan Hill Panel Core. With the Scuddles mine plan also in higher grade stopes, zinc concentrate production was 49 percent higher. A high precious metal by-product copper concentrate was also produced. Mill throughput expansion to 1.2Mtpa remains on schedule for October 1998. At Woodcutters,the zinc cash cost at US$38c/lb was the lowest achieved, reflecting small improvements in mill throughput and head grade. At Tennant Creek, mill throughput comprised Gecko ore and stockpiled Orlando open pit ore. Milling of 15,198 tonnes of Gecko 5 level gold ore yielded 8,321 ounces. Gecko is scheduled to close at the end of next quarter, with milling of Orlando stockpiles due for completion early in the new Year. GOLDFIELDS POWER AND PIPE Gas supply facilities were commissioned for the Cawse and Murrin Murrin nickel laterite projects. The power station continued to operate satisfactorily, with availability at 99.26%. DEVELOPMENT - GOLD At Boddington, due diligence on the adjacent Hedges gold mine acquisition is nearing completion. At Pajingo Operations, the Nancy North development is progressing well, with deliniation drilling about to commence. The mine expansion study is complete and the mill expansion is being costed. the feasibility study is scheduled for completion in October 1998. At Callie, the decline advanced to 482 metres vertical depth. Mining of the first underground stope commenced. Consideration is being given to a redesign of the decline to extend it to 660m vertical depth by mid-1999, allowing deeper drilling to determine the optimum position for a possible shaft development. The second stage of the mine optimise study is on schedule for completion at the end of September. Three operating scenarios are being assessed, with production rates up to 2.5Mtpa and a range of open cut and underground mining rates. At Martha, a court hearing is set to hear an appeal against the granting of resource consent for the mine expansion and against related mining conditions. At Perama Hill (Greece, Normandy LaSource effective 44.4%) infill drilling on a 50m by 50m grid is complete. Engineering and geological scoping studies are underway and are expected to be completed next quarter, allowing permitting to progress. Environmental baseline studies commenced. The Ovacik mine (Turkey, Normandy LaSource 66.7%) remains on care and maintenance. Approvals to commence operations are awaited. Feasibility activity at Mastra (Turkey, Normandy LaSource 66.7%) continues to be suspended pending resolution of the situation at Ovacik. At Angovia (Cote d'Ivoire, Normandy LaSource 90%) site works commenced on the 40,000 ounce per annum heap leach project. Initial gold production is scheduled for the March 1999 quarter. At Yamfo-Sefwi (Ghana, Normandy LaSource 41-45%) the Centenary feasibility study was extended to include the growing resources position of Kenyase, 35km along strike. Resource upgrades, including Subenso, are nearing completion, with a full feasibility study scheduled for 1999. METALS The Gossan Hill development at Golden Grove is progressing well. Both committed and actual costs are under budget and the overall schedule is in line with the expanded plant commissioning date of October 1998. At Kasese (Uganda, Banff Resources 55%) site works progressed at the US$1110 million 2Mbpa cobalt project. Civil works are essentially complete and erection of the main process plant structures is under way. Capital committed is 66% of budget, with incurred cost 47%. Shipping and customs clearance delays continue, but the initial production target date (March 1999) remains intact. MAGNESIUM At Gladstone (Queensland, Normandy 68%, direct and indirect) construction of the demonstration plant is complete and commissioning is under way. The concurrent feasibility study is progressing on schedule. A contract to supply steam and electricity for the proposed commercial plant is nearing completion which will determine the plant location and allow appropriate applications for environmental and development approvals to be lodged. more to follow 1