At its annual general meeting on 7 November, MGT Resources Chairman and Managing Director Jonathan Back confirmed the company’s plans to increase its JORC resource base to support an expansion of its Mt Veteran concentrator in Queensland. The company’s strategy is to develop short term cash flow from its projects to fund growth.
A drilling programme on the Dalcouth section of its Summer Hills mining lease is due to be completed before the onset of the wet season. Dalcouth is only 500 metres from the existing small processing plant which the company has refurbished and plans to expand from 70,000 tpy to 250,000 tpy capacity. At full expanded capacity the operation could produce some 1,000 tpy of tin-in-concentrate.
Back said that results so far have “validated the decision to focus on Dalcouth as the first mining target with drilling producing some of the highest grades at shallow depth reported in Australia for some time. Whilst the drilling program has been progressing, we have been making preparations to upgrade throughput capacity of the Mt Veteran Tin Processing Plant. This includes an application to increase our environmental approval from Level 2 to Level 1 which has been submitted and is currently being processed.” The resource upgrade is expected in Q1/Q2 2014 and designs for the mill expansion are currently being drafted.
