Metals X lowers Nifty production guidance for Sept quarter

PERTH (miningweekly.com) – ASX-listed Metals X has downgraded production expectations for the September quarter at its Nifty copper mine, in Western Australia, following a temporary suspension of operations in August.

The company on Friday told shareholders that as a result of the temporary suspension of operations, and the subsequent delays in underground stoping since operations were restarted in late August, copper production for the September quarter would be lower than previously anticipated.

The Nifty mine is now expected to produce between 3 600 t and 3 900 t of copper in the September quarter, compared with the 5 939 t delivered in the three months to June.

Since restarting mining, following repairs to the secondary escapeway, Metals X has had to undertake extensive re-drilling of existing production holes in the first of the large stopes, which resulted in delays in bringing the stope into full production.

An additional drill-rig has been redirected from the second large stope to accelerate production drilling, delaying the scheduled start of production from the second stope.

However, MD Warren Hallam noted that despite short-term delays at Nifty, Metals X remained on track to achieve its targeted ramp-up of production to 40 000 t/y by the end of the financial year.

“While this delay has been unfortunate, we are confident that we remain on track to deliver on our 40 000 t/y copper production rate. When we acquired Nifty late last year, the mine had been planned for closure with development and drilling wound down several years earlier.

“Metals X’s objective has been to redevelop the mine as quickly as possible, with our target being the achievement of a production rate of 40 000 t/y of copper by mid-2018.”

Hallam said that the limited number of mining areas, combined with the variability in mining conditions associated with the ‘checkerboard’, have continued to impact on production ramp-up during the current quarter.

“As we develop into new extensions of the deposit and increase the number of available stoping areas, we will be less exposed to unforeseen variations in production.”