Zinc

[Lone Clone]

Rosebery expansion ups Zinifex resource

May 28, 2007 - 4:31PM

http://news.brisbanetimes.com.au/rosebery-expansion-ups-zinifex-resource/20075928-f73.html

Exploration drilling at Zinifex Ltd's Rosebery Mine has upped the Tasmanian asset's resource by about 65 per cent.

The zinc, lead, silver, gold and copper mine on the west coast of Tasmania currently produces about 800,000 tonnes of ore each year.

"This increase in resource has exceeded our expectations," Zinifex's outgoing chief executive Greig Gailey said.

"Rosebery for the past 70 years has been like the Magic Pudding. As you mine some, it always replaces itself," he said.

"However, with these results, we are optimistic that we will increase the size of the Rosebery resource rather than merely replenish it."

Exploration drilling has expanded the resource to 11.7 million tonnes, and at 3.8 million tonnes the reserves are nearly 50 per cent higher than at the same time last year.

"What is most impressive is that we are only one year into the three-year Project Horizons program to increase the life of the Rosebery Mine.

"The results to date make our goal of still mining at Rosebery in 2020 look very achievable," he said.

Project Horizons is a $19 million, three-year exploration program to extend the life of the mine.

Zinifex is repositioning itself as a pure-play miner after it unveiled plans to combine its smelting assets with those of Belgian metals group Umicore in a spin-off called Nyrstar.

Nyrstar will be incorporated in Belgium, headquartered in London and is expected to list on the Euronext exchange.

It will comprise about $4 billion in assets from countries including Australia, US, Netherlands, Belgium and France, and will be the world's biggest zinc metal producer.

Since the announcement, Zinifex has moved to bolster its mining portfolio with exploration joint ventures in Queensland, South Australia, Tasmania, Tunisia, Sweden, Mexico and China.

It has also progressed its much-hyped $500 million Queensland-based Dugald River project.

In February it launched a $384 million offer for Canadian explorer and developer Wolfden Resources, which has projects in the Nanavut territory of Canada, including the Izok and High Lake copper, zinc, gold and silver deposits.

Zinifex closed up 20 cents at $16.97.

© 2007 AAP