IGO Annual Report 2016

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Annual Report 2016 17
Location
300km north of Kalgoorlie, 60km
north of Leonora
FY16 Production
39,335t Zn, 7,412t Cu, 1,603,565oz Ag,
4,880oz Au contained in 112,711t of
concentrate.
Mining
Owner operated underground mine
Processing
Single stage crushing, SAG/Ball milling,
differential flotation and filtration
Resources
2,107,000t at 10.3% Zn, 1.2% Cu,
157g/t Ag, 1.0g/t Au 1
Reserves
1,438,000t at 9.5% Zn, 1.1% Cu,
145g/t Ag, 0.8g/t Au1
Sales
During FY16, IGO had an offtake
agreement with MRI Trading AG
BACKGROUND
IGO acquired the Jaguar operations
from Jabiru Metals in 2011. At that point
it comprised the Jaguar and Bentley
underground mines. In FY14, the Jaguar
mine was closed.
In FY16, all ore was sourced from the
Bentley mine and processed through the
Jaguar concentrator to produce a copper
concentrate rich in silver and gold credits,
plus a high grade zinc concentrate.
FY16 PRODUCTION
A total of 497,751t (FY15 485,302t) of ore
at 8.98% Zn, 1.77% Cu, 131g/t Ag and
0.77g/t Au was mined from the Bentley
underground mine, predominantly
from the Arnage and Comet lenses.
Advancement of 2,539m of capital
development was undertaken.
The processing facility treated 505,578t of
ore at 8.90% Zn, 1.70% Cu, 128g/t Ag,
0.75g/t Au (FY15 488,466t @ 10.5% Zn,
1.75% Cu, 156g/t Ag).
Metal production was 39,335t Zn
(FY15: 44,999t), 7,412t Cu (FY15: 7,380t),
1,603,565oz Ag (FY15: 1,876,384oz),
4,880oz Au (FY15: 4,439oz) in 112,711t
(FY15: 122,029t) of concentrate.
The production of zinc was at the
upper end of FY16 guidance and copper
production exceeded restated FY16
guidance.
BUSINESS IMPROVEMENT
A key focus for Jaguar is the
development of continuous improvement
opportunities in all aspects of the
operation. This focus has resulted in
continued improvement in productivity
over the last 1-2 years resulting in higher
and more consistent production. Work
in FY16 also focused on opportunities to
reduce manning numbers and improve
pricing on a number of supply and
services contracts.
A second Jumbo was mobilised to site in
June 2016 to commence the acceleration
of capital development in the Arnage and
Flying Spur lenses in Bentley and ensure
consistency of future production rates.
Improvement works are being
undertaken on the Jaguar processing
facility in FY17 to further improve
operational and maintenance efficiencies.
NEAR MINE EXPLORATION
In FY16 drilling at Bentley commenced
from the hanging wall drill drive
established in FY15 primarily for the
conversion of inferred resources to
indicated category and to drill test
mineralisation extensions at depth.
As a result, the conversion of Arnage
and Flying Spur lenses from inferred
to indicated category extended from
3820mRL in FY2015 to 3625mRL in FY16.
In addition, the Arnage lens has extended
270m down dip from FY15 confirming
the Arnage mineralisation is continuous
to Bentley Deeps mineralisation drilled
in FY15 to a depth of 1,000m below
surface. Electromagnetic downhole
geophysical surveys were conducted in
FY16 and resulted in off hole conductors
being identified to the south of Arnage
lens. These conductors will be tested in
early FY17 with further exploration drilling
planned to test extensions of the Arnage
and Flying Spur lenses below a depth of
1,000m from surface.
OPERATIONS - JAGUAR
1 See Resources and Reserves section
on pages 23-28 of this report
Record mining and milling rates
achieved in the year
Ni Produced (t)
FY15 FY16 FY13 FY14 FY12
Zinc (t) Copper (t)
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Payable Metal
Product
Copper concentrate with significant
silver credits and minor gold credits, zinc
concentrate with minor silver credits