Mineral Hill Mine

The Mineral Hill Mine is located in the northern part of the Lachlan Fold Belt in central-western New South Wales, 50km from Condobolin.

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KBL Mining has refurbished and upgraded the moth-balled Mineral Hill Mine within twelve months from making the decision to commence work in August 2010. Assisting the recommencement of operations at Mineral Hill was a fully permitted underground mine at Parkers Hill, the discovery of the  high grade Pearse gold-silver deposit at open cut depths, and a team of local labour and contractors with experience of operating Mineral Hill prior to its closure in 2005.

Mineral Hill was mined as early as the late nineteenth century, however modern mining operations commenced at Mineral Hill mine from 1987. The average head grade of mining at Mineral Hill when operated by Triako was 9.1g/t and at times one ounce of gold per tonne. At the time of mine closure in 2005 copper prices were less than $4,000/t and the gold price was less than $800/oz. The mine was further impacted by lower average grades from underground and structural complexity that meant ore supply could not be sustained continuously to the plant. Since 2005, gold and copper prices have gained significantly and with Triako’s cut-off for resources of 5g/t gold and 3.5% copper, substantial Resources were left developed yet unmined providing relatively cheap and easy pickings for KBL Mining to use to feed an expanded and upgraded $45m plant. At approximately $5,000 per metre to develop, KBL Mining intends to make full use of Triako’s 15 kilometres of underground development.

Triako also left KBL Mining a 2,847 hole, 230,000m drill database for Mineral Hill Mine and nearby Iron Duke, worth approximately $50m if replicated today. This is enabling KBL Mining to quickly and cost-effectively add Resources to the project including a maiden resource named ESOZ, which relied on a number of Triako holes and only 1 new hole, to add 43% to the copper and 64% to the gold Resources at Mineral Hill.

KBL Mining has a substantial tenement holding at Mineral Hill, totalling 49 square kilometres, which consists of 17 mining leases plus an exploration licence (EL1999), all of which are 100% KBL Mining owned.

Since establishment, KBL Mining has focused its efforts on identifying sufficient resources to support a re-start of operations at Mineral Hill. Exploration work to date has resulted in the discovery of high grade gold mineralisation at the Pearse prospect plus the evaluation and upgrade of the Parkers Hill Cu-Pb-Zn-Ag resource. Many additional near mine exploration targets with the potential to provide ore feed to the Mineral Hill process plant have also been identified.

KBL Mining has indicated that it should add an additional tonnes to its current 5.2million tonnes with planned exploration.