Ivernia West has reduced the carrying value of its 50% interest in the Lisheen lead and zinc mine in County Tipperary by $25m.
This is because of extra costs incurred during the delayed ramp-up of the mine last year and a revision of the estimated reserves.
The company says most of its focus in the third and fourth quarter of 2000 was on stabilising underground operations and improving the rate of production. As a result, fourth quarter production was lower compared with the third quarter.
But Ivernia says ore production improved to about 76,500 tonnes in January and 90,200 in February, 13% and 10% respectively above targets. The company now says the mine should be in full production by mid-2001.
Ivernia West also announced today the completion of the final feasibility study on the Magellan Lead Project in Western Australia. This study indicated a strong 76% before tax internal rate of return.
The study says that the capital cost required to develop the Magallen project would be $26.1 million. It is envisioned that the project would be financed through a 70:30 combination of debt and equity.
Once in production, about one million tonnes a year of oxidized lead ore will be extracted via an open pit during an estimated nine year mine life. Lead recoveries are expected to vary from 77% to 88% to produce a concentrate grading from 67% to 75%.
The Magellan Project is controlled and managed by Magellan Metals - of which Ivernia owns 91.6% and plans to increase its interest to 100%.
