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Ore reserve increase

Tuesday, 4th January, 2011

Perilya has updated its Broken Hill ore reserve by 18 per cent.

The announcement last week coincided with a new Life of Mine plan for the Southern Operations of more than 10 years under conservative price assumptions.

Perilya told the Australian Stock Exchange on Thursday that its ore reserves had increased to about 15.26 million tonnes, containing 5.3 per cent zinc, 4.0 per cent lead and 42g/t of silver as at June 30 2010.

“In addition, signif icant mineral resource outside of the reported Ore Reserve could be converted to Ore Reserves at a later date,” the statement noted.

Managing Director Paul Arndt said: “... we have been able to not only replace the current year’s production but continue to be able to add further to the mine life, confirming that Broken Hill remains a world class asset and will be a significant base metals producer for a long time. 

“Through the acquisition of Globestar, the study for the development of Mount Oxide, the further extension of the reserve and resource base at Broken Hill and thecontinued development of other feed sources for the Broken Hill concentrator, we find ourselves entering the New Year with an extremely strong productionbase and a suite of development options.

“Our task going forward is to ensure this improvement is sustained and to sensibly progress the expansion opportunities that lie before us at Broken Hill.”

The combined Broken Hill Operation Mineral Resource for the Southern Operations, North Mine Uppers, North Deeps, Potosi, Silver Peak, Central

Blocks, Flying Doctor and Pinnacles is about 23.70 Mt at an average grade of 9.4 per cent zinc, 7.3 per cent lead and 89 g/t silver, representing an increase in tonnage of 13.6 per cent on last year.

Perilya is aiming for combined production of 120,000 to 130,000 tonnes of contained zinc and lead per annum and 1.6 million to 1.7 million ounces of silver from its Southern Operations.

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