Flinders

Perilya has 100 per cent ownership of the Beltana high grade zinc oxide mine, as part of the Flinders Project, near Leigh Creek in South Australia.

The Flinders project is robust for a wide range of zinc prices due to the direct shipping of ore to smelters.  This is made possible by high grade deposits comparing favourably with the concentrate grade from other operations, hence obviating the need for concentrating the ore.

Total mineral resources, in all categories, in the project area currently stand at 972,000 tonnes at 29.8 per cent zinc metal, containing almost 300,000 tonnes zinc metal .

Beltana

Development of the Beltana zinc mine at Flinders comprised a 12 month open mining and on-site crushing program. Mining operations commenced in March 2007, ahead of schedule and under budget, and concluded in February 2008.  The project was internally funded.

The Beltana mine is the first phase of the Flinders Project, located 520 kilometres north of Adelaide in the Flinders Ranges, and involves direct shipment of high grade zinc oxide ore through Port Pirie to smelters in Asia.

A total of 316.400 tonnes of zinc silicate ore was mined and stockpiled at an approximate average grade of 32 per cent zinc, for a total of 101,385 tonnes of contained zinc.

Shipments of Beltana blended intermediate grade ore have been sold to China and on 24 January 2008, Perilya signed a two year agreement with Padaeng Industry Public Co. Ltd for the sale of approximately 60,000 tonnes of high grade ore and 50,000 tonnes (subject to further testing) of low grade ore from Beltana.  This has established a solid marketing platform for intermediate grade ore.  Sales of the stockpiled ore are expected to be completed over the coming two to three years.

new techniques find new opportunities

The Beltana and Aroona zinc oxide deposits were found during exploration in the 1960s. Perilya's exploration is targeting extensions to the high-grade zinc oxide mineralisation.

The potential for significant discoveries has been demonstrated at Emu Flats, midway between Beltana and Aroona, where drilling intersected high grade zinc oxide totalling 355,000 tonnes at an average grade of 30 per cent zinc.

Throughout the Flinders project area, there has only been limited evaluation using modern exploration, drilling and geophysical techniques.

Perilya is optimistic that by using modern exploration techniques in this established zinc province, there will be more significant discoveries.  A regional exploration program is testing the unexplored sections along the 15 kilometre Beltana-Aroona trend and the remainder of the 4,138 square kilometre tenement holding.

looking forward

Drilling programs are planned to define the resources at Reliance, Aristotle and Aroona II as well as test a number of regional prospects close to the Beltana operation including Aroona, Emu, Sundown and Wallrider.  These prospects have potential for defining shallow high grade resources and large deeper systems.

Promising infill and resource extension drill results have increased the likelihood of the development of the Reliance mineral resource, which currently comprises  387,000 tonnes at 27.6 per cent zinc.  Completion of the feasibility study in the June quarter will increase Perilya's ownership of the project to 85 per cent.