KBL Mining Limited (ASX:KBL and KBLGA) is pleased to announce the commencement of commercial production from the recently discovered, high grade Cu-Au Red Terror Lodes together with further high grade intersections of the Lodes at its Mineral Hill Mine in Central New South Wales.
Production update at Mineral Hill
On 15 August 2012, KBL announced the discovery of a new style of gold-rich mineralisation directly below and adjacent to current mining operations at the Mineral Hill Mine. Since 15 August, continued exploration success has enabled commencement of development to access the lodes.
On 8 December 2012, the first stope of 18,000 tonnes (75% of the monthly ore budget) within the Red Terror Lodes was fired, which will allow the commencement of mining from Red Terror. To date, development material from a drive through the high-grade southern area of Red Terror has been processed through the plant with a material improvement in production characteristics over current ore from the Parkers Hill ore body.
Prior to the development and commencement of stoping of the Red Terror Southern Lode, copper concentrate production in October and November was from Parkers Hill Stopes 7 and 8, located within sedimentary host rocks, was poor due to internal stope dilution and the presence of significant quantities of talc which reduced copper recoveries.
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