worth a quick squiz.... apologies An Unformatted Text Grab minus...

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



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Have just taken a pozzie...
some action atm....check the bigcharts up the top