Operations - North Queensland

Kagara Ltd has four operational hubs at Mungana, Mt Garnet, Balcooma and Thalanga in North Queensland.

Mt Garnet, which was the Company’s first operation in the region, is its administrative and processing centre with two operating treatment facilities – a polymetallic plant that treats high-grade ore sourced from the Mungana underground mine and nearby Mt Garnet underground mine, and a copper circuit that treats ore sourced predominantly from the Balcooma underground mine.

The Mungana operations include a partially completed polymetallic concentrator which, if completed, has the potential to underpin a substantial increase in Kagara Ltd’s zinc production, which would be driven by the development of new deposits in the region such as King Vol and

The Thalanga operations include a treatment facility capable of treating both polymetallic and copper ore which currently processes ore from the high-grade Vomacka open pit.

These mines supply ore to Kagara Ltd’s copper and polymetallic plants at Mt Garnet, as well as the polymetallic treatment facility at Thalanga.

In the FY 2011, Kagara Ltd produced:

• 22,530t copper, targeting an increase of more than 30,000tpa by FY 2015.
• 40,125t zinc-lead, targeting an increase to 71,000tpa by FY 2014.

The establishment of an internal Business Improvement team, supported by external consultants Partners in Performance, has resulted in the identification of a range of new initiatives with the potential to streamline and improve these operations. Several of these initiatives were implemented in FY 2011 and many more are currently being considered and reviewed.