Photo by: Bloomberg
PERTH (miningweekly.com) – Metals developer Mungana Goldmines said it was hoping to bring its King Vol zinc project, in Queensland, into production by 2016, but cautioned shareholders that this would be dependent on positive project studies and the availability of adequate funding.
Based on the current resource model of 1.52-million tonnes of ore, grading 14.3% zinc, the King Vol mine was expected to produce between 35 000 t/y and 40 000 t/y of zinc.
However, Mungana said that more work needed to be done to determine the feasibility of the project, adding that substantial capital expenditure would be required to allow for project development.
The ASX-listed company was currently implementing a work programme to complete a feasibility study on King Vol by the end of March next year.
Mungana was currently fending off a takeover offer from Auctus Chillagoe, which was offering 13.5c a share for all the issued shares in Mungana.
An independent expert recently backed the company’s decision not to accept the offer, saying the unsolicited takeover offer was neither fair nor reasonable.