During the financial half-year the principal continuing activities of the company consisted of mineral explorations, resource development and mining in Australia.
Review of operations
The loss for the company after providing for income tax amounted to $5,914,325 (31 December 2011: $2,669,120).
Mineral Hill Mine, NSW
KBL 100% Ownership
Mine and Mill Production
During the half year, production during September to November 2012 was negatively impacted by poor ore quality (high talc content) together with internal stope dilution which inhibited the grade of copper delivered to the mill and its recovery.
In August 2012, a new underground mining zone was discovered at Red Terror, with ongoing drilling to define a mining Reserve. Importantly, ore at Red Terror does not host similar deleterious impurities and has superior characteristics over Parkers Hill ore.
Development of Red Terror commenced in September 2012 to access the lodes, which are adjacent to mining operations at the Parkers Hill underground workings. Commercial production from Red Terror commenced during December 2012 delivering a material improvement in copper production performance. Ore from Red Terror is expected to contribute 50% of ore delivered to the Mineral Hill mill for the six months to 30 June 2013.
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