MiningNet News carrying this story today, resumption of full production in October
----------------------------------------------------- Michael Quinn Thursday, 10 August 2006
RE-EMERGING zinc miner CBH Resources has extended its takeover offer for Triako Resources, owner of the high-grade Hera zinc-lead-gold deposit in central New South Wales.
Endeavor zinc-lead-silver mine near Cobar, New South Wales
CBH said it now held more than 58% of Triako, whose shareholders are being offered three-and-a-half CBH shares for each Triako share. The bid has now been extended until September 1.
Hera lies 150km south of the Endeavour mine and plant and can be accessed by sealed road from the mine, which returned to profitability in the June quarter after an underground wall failure last October had a major deleterious impact on CBH's mining operations.
It is understood CBH has been considering the possibility of trucking around 200,000 tonnes per annum of Hera ore to the Endeavour processing facilities. Hera has an inferred resource of 1.94 million tonnes grading 6.7 grams per tonne of gold, 2.8% zinc and 2.5% lead.
Current full mine production of 1.2Mt per annum at Endeavour is being targeted for October, with brokerage Hartleys recently calculating that the high metal prices of recent times could generate free cash flow of around $9-10 million per month from Endeavour at such production levels.
CBH is also considering base metal developments at Sulphur Springs in Western Australia and at Broken Hill (CML7).
Shares in CBH were up 1c at 37.5c in late trade, capitalising the company around $240 million (fully diluted).
CBH Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
