CBH back on track after downturn
Wednesday February 3, 2010
Endeavor Mine has continued to bounce back from a horror year in 2008-09, recording above-budget lead and zinc production.
The mine’s plans to ramp up production later this year are also ahead of schedule according to a quarterly report released last week by CBH Resources.
Mill throughput at the mine for the quarter was 10 per cent above forecast, with the mine generating an operating cash flow of $2.8million, in contrast to last year where it operated at a loss.
CBH managing director Stephen Dennis said things are continuing to look more positive at the mine.
“Additional development and production drilling activities, together with the successful recommissioning of the paste fill plant in December has ramp-up activities ahead of schedule.
“This work will provide Endeavor with the necessary development and drilled stocks for a successful production ramp up,” Mr Dennis said.
The company’s outlook has also improved with the recent sale of a 50 per cent interest in CBH’s Rasp Mine in Broken Hill to Toho Zinc.
“The company is now benefitting from increased metal prices and reduced costs, with operations at Endeavor remaining cash positive for the first half of the current financial year.
“The expansion of Endeavor mine to 850,000 tonnes per annum is on track to commence in mid 2010, and mining of high grade remnant ore at Rasp Mine is expected to commence at about the same time.
“The increased production at Endeavor, combined with new production from Rasp, will generate a significant increase in revenue for the company, particularly in light of the recent increase in metal prices,” Mr Dennis said.
CBH has also resumed its exploration activities in the Cobar area after all activities were suspended in 2009.
Drilling work has commenced within a 20km radius of Endeavor Mine, although
to date no significant results have been
recorded.
“Further drilling programs are planned
for the upcoming quarter, which are designed to test conceptual targets to the southwest and north of the Endeavor deposit where historical drill coverage is sparse,” Mr Dennis said.
The company also reported that Endeavor has continued to build an impressive
safety record, with 641 days without a
lost time injury.
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