:: Kagara Boosts Zinc Capacity  

Kagara Zinc Ltd is pleased to announce that, subject to finance and environmental approvals, management has made a decision to proceed with an upgrade of the Mt Garnet treatment facility. The plant will increase in capacity from current 90,000 tonnes of concentrate per annum to 148,000 tonnes per annum. The zinc concentrate output will increase from 70,000 tonnes per annum to 110-120,000 tonnes per annum.

It is planned to complete the upgrade by December 2004 at a capital cost of approximately $5.0 million. The feed for the upgrade is to be sourced initially from the Surveyor orebody and then from a combination of the Dry River South and Balcooma polymetallic deposits. Current reserves and resources are sufficient to supply 10 years of feed at the expanded rate.

In addition to the polymetallic mineralisation at Balcooma there is also a significant supergene copper deposit. As part of the upgrade the Company plans to install a dedicated copper circuit at a cost of approximately $2.5 million, which will bring the total cost of the upgrade to $7.5 million. Capital cost estimates have been supplied by Minproc Engineering and are based on new equipment to an accuracy of ± 30%. Metallurgical test work on this supergene material indicates a recovery of 90% can readily be achieved. Once the upgrade is complete the Mt Garnet concentrator is expected to deliver the following concentrate tonnages;

• Zinc 110-120,000 tonnes per annum
• Lead 23 - 25,000 tonnes per annum
• Copper 8 - 12,000 tonnes per annum
• Supergene Copper 12 - 15,000 tonnes per annum

Contact:
Kagara Zinc Ltd
Ground Floor
24 Outram Street
West Perth
WA 6005
Ph:+61894811211
admin@
kagara.com.au