Weatherly Unveils Plan to Resume Underground Mine Operations

20 December 2009 (Last Updated December 20th, 2009 18:30)

Weatherly has unveiled a five-year mine plan for its operations at its Otjihase and Matchless underground mines near the Namibian capital Windhoek. Late last year the mines were put under care and maintenance following the price downturn in metal. Weatherly is ready to resume

Weatherly has unveiled a five-year mine plan for its operations at its Otjihase and Matchless underground mines near the Namibian capital Windhoek.

Late last year the mines were put under care and maintenance following the price downturn in metal.

Weatherly is ready to resume production at the mines after copper prices recovered to a similar level prior to the economic slump.

East China Exploration and Development Bureau will finance the plan through a proposed equity subscription.

The total capital cost for resuming production at the mines is expected to be $10.7m in the initial year of operations followed by a further $1.6m needed at Matchless for the second and third years of operations.

Under the five-year plan the company set an extraction target of roughly 2.3 million tonnes of ore.

The combined operations' average run of mine ore production is expected to average 43,873t per month, generating concentrates that include 9kg of gold, 237kg of silver and 688t of copper.

Preliminary work will commence early next year, with Otjihase resuming production in the third quarter of 2010 and Matchless a few months after that.