Name and Location
Dugald River zinc/lead silver project, Queensland, Australia.

Client
MMG Dugald River.

Project Description
The Dugald River project is one of the world’s largest and highest-grade  undeveloped lead/zinc/silver deposits known, 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.

The project will involve the development of an underground mine accessed by two declines (North and South). Run-of-mine material will be hauled to the surface before treatment by an on-site concentrator using conventional crushing, fine grinding and flotation methods.

The mine is expected to process an average of two-million tonnes of ore to initially produce 200 000 t to 220 000 t of zinc in concentrate, 27 000 t to 30 000 t of lead in concentrate and 900 000 oz of silver in concentrate a year.

The zinc and lead concentrate will be transported by road to Cloncurry. A rail load-out facility at Cloncurry will be constructed where concentrate will be transported by rail to Townsville and shipped or sold to local smelters.

Dugald River has a mine life of more than 20 years, with the orebody open at depth.

Value
$1.5-billion.

Duration
The project will be commissioned in 2015, with first ore feed expected in the third quarter. Based on current estimates, the first concentrate shipment is expected to take place in the fourth quarter of 2015.

Latest Developments
Forge Group Minerals and Resources has been awarded an engineering, procurement and construction (EPC) contract of about $290-million for the Dugald River project.

The scope of work includes the engineering design and project management, as well as the procurement and construction of a zinc/lead/silver concentrator, with associated plant facilities.

Site construction work related to Forge Group’s contract is scheduled to begin in February 2014, with completion expected by June 2015.

Key Contracts and Suppliers
Forge Group Minerals and Resources (EPC).

On Budget and on Time?
Not stated.

Contact Details for Project Information
MMG, tel +61 3 9288 0888 or fax +61 3 9288 0800.
Forge Group Minerals and Resources, tel +61 8 6389 8500, fax +61 8 6389 8599 or email info@forgegroup.com.au.