They have been able to reduce it to 47c lb and expect it to go down significantly as they truck high grade ore from the new mungana deposit, current ore they are using is approx 12% mungana's high grade ore is approx 19%. this should help to weather the current low prices.
At the agm they said that they were looking at rejigging the new mungana processor to process the large gold halo surrounding the polymetallic deposit, this could be running by Oct 09
That means they could be a Gold producer in less than 12 months and not be a slave to the low metals prices, the processor can be converted back once metals prices recover.
KZL Price at posting:
48.2¢ Sentiment: Buy Disclosure: Held
