Name of the Project
Dugald River zinc/lead/silver project.

Location
Queensland, Australia.

Client
MMG.

Project Description
The project is known to be one of the world’s largest and highest-grade undeveloped lead/zinc/silver deposits, with a resource of 53-million tonnes at 12.5% zinc, 1.9% lead and 36 g/t silver. It is located in north-west Queensland, about 65 km north-west of Cloncurry.

MMG approved the updated development plan for the Dugald River project in June 2016, bringing it on line at a time when global zinc supply was expected to dissipate with the closure of several mines.

The mine will operate at a production rate of 1.7-million tonnes a year, producing about 170 000 t/y of zinc in concentrate and by-products over an estimated 25-year mine life.

Net Present Value/Internal Rate of Return
Not stated.

Value
MMG will spend about $600-million on project costs to achieve first concentrate shipment.

Duration
First production from the project’s concentrator is expected in 2017.

Latest Developments
The Dugald River project was 73% complete as at June 30, 2017, and development is advancing ahead of schedule. The production of first concentrate has been brought forward from 2018 to late 2017.

Contracts and Suppliers
Forge Group Minerals and Resources (engineering, procurement and construction) and Barmico (underground mining contractor).

On Budget and on Time?
The project is ahead of time and within budget.

Contact Details for Project Information
MMG manager of corporate affairs Andrea Atell, tel +61 3 9288 0888 fax +61 3 9288 0800 or email Andrea.Atell@MMG.com.
Forge Group Minerals and Resources, tel +61 8 6389 8500, fax +61 8 6389 8599 or email info@forgegroup.com.au.
Barminco, tel +61 8 9416 1000, fax +61 8 9416 1099 or email info@barminco.com.au.