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MGX RESOURCES LIMITED — Capital/Financing Update 2014
Nov 9, 2014
65331_rns_2014-11-09_5290ae19-a02f-446a-96a7-3ee685cd7eea.pdf
Capital/Financing Update
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Mount Gibson Iron Limited
ABN 87 008 670 817
Level 1, 2 Kings Park Road West Perth 6005, Western Australia PO Box 55, West Perth WA 6872 Telephone: 61-8-9426-7500 Facsimile: 61-8-9485 2305 E-mail: [email protected]
VIA: WWW.ASXONLINE.COM
ASX ANNOUNCEMENT
ASX Code : MGX
10 November 2014
KOOLAN ISLAND UPDATE AND REVISION OF SALES GUIDANCE
Mount Gibson Iron Limited advises that it has lowered full year sales guidance to a range between 6.0 and 6.4 million tonnes for the 2015 financial year, following a change in the schedule to resume production in Main Pit at the Koolan Island mine in the Kimberley.
This schedule change follows some further minor instability on the weekend during repair works that were being undertaken in the immediate area of the slip on 24 October 2014 that partially reduced the effectiveness of the constructed seawall.
Assessment of the instability has subsequently identified that additional remedial actions will be required to complete repairs and enable production to be safely resumed. Mount Gibson anticipates the planned remediation work may take approximately three months to complete, with an estimated capital cost of $5-10 million. Progress of this plan will be closely monitored and updates provided as appropriate.
Mining continues to be suspended in Main Pit as a precautionary measure. Operations outside Main Pit are continuing as normal, including accelerated production in the Acacia East satellite pit.
The remediation programme will have no impact on the Koolan Island long term life of mine plan and Mount Gibson will utilise the intervening period to undertake further optimisation and productivity improvement work.
For further information, please contact:
Jim Beyer
John Phaceas
Chief Executive Officer Manager External Relations Mount Gibson Iron Limited Mount Gibson Iron Limited +61-8-9426-7500 +61-8-9426-7500