Project development

Significant pre-approval activity is underway at the Dugald River project site as work continues to optimise mine and infrastructure design.

As at the end of June 2013, underground mine development at Dugald River was in excess of 8,000 with more than 20,000 metres of diamond drilling completed.

Strong underground mine development has enabled further geotechnical investigation on deeper sections of the Dugald River ore. These investigations identified complexities in the ore body which need to be planned for and thereby prompting a review of the proposed mining method, optimum production volumes and infrastructure design.

MMG will also conduct a metallurgical test of about 100,000 of Dugald River ore on the processing circuit at its Century mine in the second half of 2013. The metallurgical test will help MMG to optimise Dugald River plant and infrastructure design by providing detailed information about how the ore performs under large-scale processing.

The trial will also produce a bulk concentrate sample for customers.

About 100,000 tonnes of Dugald River ore will be trucked from the project site to Century mine between July and September for the trial.

Other development activities underway include:

  • Construction of the main site access road;
  • Completion of permanent construction camp; and
  • Progression of arrangements for off-site infrastructure.

MMG expects its review of the proposed mining method and associated production volumes and infrastructure as well as the metallurgical trial to be completed during the second half of 2013.

The Board of MMG will then make a final investment decision regarding the development of the Dugald River project.

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