Company Announcement: Outokumpu Project Accelerates
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Altona Mining Limited is pleased to provide an operations update on the Outokumpu Project in South East Finland. The Project comprises the new Kylylahti underground mine and the refurbished Luikonlahti processing plant. Ore is trucked 42 kilometres from the mine to the mill. Altona’s Managing Director, Dr Alistair Cowden, said “I am delighted to report that recent performance at the Outokumpu Project is ahead of market guidance in terms of production, design throughput and copper grades. As a result, we are raising our production guidance for the 2012/2013 year which ultimately reflects upon the quality of our team we have in place in Finland.”
Production Performance
Ore production commenced in January 2012 from ore in development drives. Stoping commenced in late May and during the December 2012 quarter, mine production reached 140,000 tonnes with average grades for copper at 1.62% and gold at 0.68g/t. Production volumes are currently exceeding design rates of 550,000 tonnes per annum (46,000 tonnes per month) while copper grades are surpassing 2012/2013 forecasts (1.33% copper) and life of mine average (1.57% copper). Mill performance continues to be excellent with metal recoveries, utilisation rates and throughput achieving or exceeding design. Copper metal production for the quarter was better than forecast and when annualised, reached the design rate of 8,000 tonnes per annum.
Production Guidance
Production guidance for the 2012/2013 financial year was originally forecast in July 2012 to be between 5,000 and 6,000 tonnes of copper and 5,000 to 6,000 ounces of gold in concentrate. Altona confirms that it is on track to exceed the upper level of the guidance highlighted in July 2012, which has now been increased to between 6,500 and 7,000 tonnes of copper metal and 6,500 to 7,000 ounces of gold in concentrate.
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