Name and Location
King Vol zinc project, Queensland, Australia.

Client
Mugana Goldmines.

Project Description
The results of a scoping study on the King Vol project have indicated that it has robust economics and is a technically low-risk zinc development when compared with a strong zinc price outlook – the project is highly leveraged to the gold price.

The scoping study is based on a mining inventory of about 1.33-million tonnes, grading 11.9% zinc, 0.6% copper, 0.4% lead and 21.1 g/t of silver.

The study envisages that about 35 900 t/y of zinc, 840 t/y of copper, 910 t/y of lead and 185 000 oz/y of silver in concentrate could be produced at the mine.

The planned mining method and schedule are based on industry-standard, Australian mechanised underground mining techniques.

The underground mine will be accessed through a decline.

Underground mining will be through narrow sublevel open stoping, or benching, in a top down sequence.

Pillars will be left behind to ensure stability of the mining process, and detailed planning and technical assessment will ensure maximum metal extraction.

A mechanised loading and trucking operation will transfer the ore to the surface for transport to the Mungana processing facility, about 25 km south-east of the King Vol deposit.

The scoping study assumes that the existing partially built processing facility at Mungana, which is considered to be 65% to 75% complete, will be reconfigured and completed for the processing of the King Vol material.

Processing will comprise conventional crushing, milling, classification, flotation, dewatering and filtration to produce separate zinc, copper and lead concentrates.

The project is expected to have an initial mine life of about four-and-a-half years.

Net Present Value/Internal Rate of Return
The scoping study has indicated that the project is most sensitive to movements in the zinc price and exchange rate.

At a 10% discount rate, the net present value of the project will change by about A$26-million for every 10% movement in the zinc price.

Value
Preproduction capital is estimated at A$37.4-million.

Duration
First production is scheduled for early 2017.

Latest Developments
The scoping study supports the work plan established by Mungana to complete a feasibility study on the King Vol zinc project by the end of March 2016.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Mungana Goldmines, tel +61 7 4729 8400 or email info@mungana.com.au.