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Cairn Hill delivery downgraded on lower copper values

Cairn Hill delivery downgraded on lower copper values

Photo by Bloomberg

28th April 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX- and TSX-listed miner IMX Resources on Monday warned shareholders that its Cairn Hill mine, in South Australia, would likely deliver less cash than previously expected.

IMX noted in a statement that the last two shipments of direct shipping ore magnetite-copper ore from the Cairn Hill mine had delivered lower-than-expected copper grades. The shipments included the final ore to be extracted from the bottom of Pit 1, which formed part of the first phase of the Cairn Hill operation.

As a result of the lower copper grades, the total after-tax cash distribution from Cairn Hill would decrease from the initial estimate of A$13.3-million to A$8-million, through until mid-2015.

The lower-than-expected pit grades in Pit 1 have since recovered to ordinary levels, and would not have any bearing on the remainder of Phase 1 operations.

Earlier this month, IMX and its joint venture partners approved the Phase 2 extension of the Cairn Hill project, that would initially comprise the mining of two new openpits to the east of the current Pit 1, with production of about one-million tonnes of product.

Edited by Creamer Media Reporter

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