Zinc explorer and miner Kagara Ltd (KZL) said its Thalanga treatment facility has recommenced full production following the end of the wet season in far North Queensland.
“Our trucking fleet is now operating at full capacity with no load restrictions and the large stockpiles of concentrates built up at Mt Garnet during road closures over the last three months are being trucked to the Sun Metals refinery or the Townsville port.” Kagara said.
It said production for the 2007/08 financial year remains on target for 40,000 tonnes of zinc and 27,000 tonnes of copper metal.
The West Australian miner said last month it would lose about 3000 tonnes of copper production due to a series of prolonged rain events.
The company said the rain resulted in road closures, causing the temporary suspension of the Thalanga copper concentrator located to the west of Charters Towers.
Shares in KZL closed 4 cents higher at $4.50.
Kagara is a low-cost producer of zinc and copper concentrates in the Mt Garnet-Chillagoe area, North Queensland.
It has three base metal processing facilities in operation at Mt Garnet and Thalanga, with a fourth under development at Mungana.
In a statement to the stock exchange today, the company also said the Lounge Lizard nickel sulphide deposit at Forrestania is not for sale contrary to media reports.
The company conceded that as nickel is not a core commodity and that one option for funding a future development of the large Admiral Bay zinc-lead-silver-barite deposit in the Canning Basin of Western Australia would be to sell Lounge Lizard at a point when its value has been fully evaluated by an ongoing diamond drilling program.
