worth a quick squiz....
apologies An Unformatted Text Grab minus graphics
MARLBOROUGH RESOURCES NL ABN 84 010 126 708 HEAD OFFICE: Telephone: 61 2 9956 8444 PO Box 279 Facsimile: 61 2 9955 6526 North Sydney NSW 2059 Australia www.marlboroughresources.com 15 January 2004 Company Announcements Australian Stock Exchange Bridge Street SYDNEY NSW 2000 Via ASX Online RECORD TIN PRODUCTION DECEMBER RESULTS PLANT UPDATE Marlborough Resources NL is pleased to advise that a number of production records have been achieved at the Ardlethan Tin Project: • Highest ever monthly production in December at 135.7 tonnes of tin • Highest ever quarterly production at 314 tonnes of tin in the December Quarter • Highest ever single day tin production at 6,990 kg 0 20 40 60 80 100 120 140 160 October November December T o n n e s T in P r o d u c e d 0 50 100 150 200 250 300 350 Q1 Q2 Q3 Q4 T o n n e s T in P r o d u c e d DECEMBER QUARTER TIN PRODUCTION 2003 QUARTERLY TIN PRODUCTION The $A spot tin price has increased by around 20% since mid 2003 to be around A$8,400 currently. During the same period the US$ spot tin price has increased by around 40% to US$6,500 currently AVERAGE MONTHLY SPOT TIN PRICE 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 July August September October November December TIN PRICE: $ per tonne Tin Australian Dollar Spot Price United States Dollar Spot Price Marlborough’s currency hedging added 7.5% to its spot sales revenue in December. The water availability constraint on production at Ardlethan has been eliminated by commencing to use water from the Old Mine area to supplement process water stocks. Construction of the New Plant has been completed and commissioning is in progress. This is expected to result in significantly lower unit costs of production on site. Ardlethan cash operating costs in December were A$7,268 per tonne of tin produced (including smelting costs) with the realized tin sales price being A$8,622 per tonne of tin metal. Exploration has confirmed the existence of a high grade Deep Lead below the current mining horizon and of ore grade mineralization in the White Crystal Lead. TIN PRODUCTION Tin production has improved during the Quarter and progressively during the 2003 year. December tin production at 136 tonnes was 24% higher than June 2003, the previous best month, while the December Quarter production at 314 tonnes was 10% higher than September 2003 Quarter, the previous best quarter. The two main contributors to this improvement are • Increasing ore grade As mining progresses northwards towards the tin source ore grades are improving • Water availability One of the main reasons for the improved performance at Ardlethan since November is a significant breakthrough in process water supply. The Ardlethan area remains drought affected and production in October and November was restricted by lack of process water and also a high level of suspended solids in recycled process water. In late November a trial utilising slightly acidic water sourced from the old Wild Cherry Open Pit (mined by Aberfoyle Ltd until 1986) demonstrated very significant benefits for both clarifying process water and also breaking up clays associated with higher grade ore. The very substantial water resource in the Wild Cherry pit is expected to augment other water supplies such that water availability should no longer be a constraint on production. October November December QUARTER ENDING 31 DECEMBER 2003 QUARTER ENDING 30 SEPTEMBER 2003 Throughput in Bank Cubic Meters (BCM) 54,261 35,844 55,970 146,075 164,908 Tin Produced in Kg of Tin 95,586 82,479 135,676 313,741 285,233 Estimated Recovered Grade in Kg of Tin per BCM Treated 1.76 2.30 2.42 2.15 1.73 DECEMBER RESULTS Financial results have improved significantly since the water issue has been resolved. Based on the unaudited management accounts, the cash operating cost of production per tonne of tin was $7,268 in December. As previously advised, the price of tin on the LME rose strongly in recent weeks and the average unhedged price achieved by Marlborough in December was A$8,021 per tonne. After the benefit of the Company’s currency hedging program, the achieved price was A$8,622. Further details will be included in the December Quarterly Report to be issued later in January. NEW PLANT Marlborough has also previously advised it’s plan for construction of a new processing plant at Ardlethan, designed to reduce processing costs further. While the Christmas / New Year holiday period delayed construction of the plant somewhat, construction has now been completed and commissioning has reached the stage of ore being fed continuously through the plant. Full production from the new plant is expected shortly. EXPLORATION Subsequent to the Company’s rights issue in late 2003, an exploration program commenced to upgrade existing near-mine resources at Ardlethan. The initial target in this regard is the higher grade Deep Lead horizon below the Yithan Lead Upper Horizon currently being mined. During October a gravity survey was conducted to define the lead and drilling to confirm its grade was completed prior to Christmas. Results are currently being compiled and details are anticipated to be available in the December Quarterly Report. The November drilling program also included an initial line of holes across the White Crystal Lead. Results confirmed the presence of significant ore grade gravels. A drill rig will be on site on 25th January to commence a programme of some 200 holes totalling around 2,500 metres on this and the North Road Lead targets. Currently resources total 1,450 tonnes of tin at the White Crystal and North Road alluvial prospects. During January it is also planned to commence a program of pit sampling resources around the Wild Cherry and White Crystal open cuts to define eluvial and scree ore close to its source. The January exploration work is expected to increase ore reserves substantially. P J REYNOLDS MANAGING DIRECTOR
................ Have just taken a pozzie... some action atm....check the bigcharts up the top
