ASX-listed North Queensland Metals has announced that its Baal Gammon mine project in the Herberton area west of Cairns is scheduled for commissioning late next year. The relatively small scale open pit copper project has valuable by-product tin, silver and indium. In a statement NQM Chief Executive John McKinstry said: “Baal Gammon requires relatively low capital cost, can be brought into production quickly and is expected to generate high early returns due to the favourable copper grade profile. While copper will be most important for the project in terms of volume and revenue, all four of Baal Gammon’s metals are experiencing strong international demand.”
The Baal Gammon project is expected to mine and process approximately 500,000 tonnes of ore per year over a seven year life. The company’s recently completed feasibility study indicates that the capital cost will be approximately A$47 million, (US$45 million) with a payback period just over three years. Probable ore reserves grade 0.96% copper and 0.22% tin, suggesting annual tin production of some 600 – 700 tonnes.
The company says that negotiations on project financing are advancing and that there is potential to speed up the start-up. “Mining leases are expected to be granted in July or August 2008 following which construction can commence. While the project is expected to be commissioned in late 2009, there is potential to advance this time frame by reducing construction time.”
