Minmetals Resources (01208.HK) has reported the Minerals and Metals Group's (MMG) updated mineral resources and ore reserves statement as at 30 June 2011.

MMG mineral resources (contained metal) as at 30 June 2011 are estimated to contain 16.4 million tonnes of zinc, 3.3 million tonnes of copper, 2.8 million tonnes of lead, 334.3 million ounces of silver, 7.4 million ounces of gold and 0.26 million tonnes of nickel. In general, all mineral resources, except zinc, have increased since the June 2010 estimate predominantly due to exploration success.

MMG ore reserves (contained metal) as at 30 June 2011 are estimated to contain 8.1 Mt zinc, 0.9 Mt copper, 1.3 Mt lead, 102.4 million ounces silver and 0.6 million ounces gold. The total ore reserve estimate for June 2011 represents a significant increase in zinc (103.9%), lead (126.1%) and silver (108.2%), a minor increase in gold (1.1%) and a decrease in copper (6.1%) compared with the June 2010 estimate.

Minmetals said that the 103.9% rise in zinc ore reserve was mostly due to the inclusion of the Dugald River ore reserve for the first time.

Ore Reserves have increased significantly with the inclusion of the Dugald River ore reserve in the MMG statement. The board of Minmetals has approved expenditure of A$157 million to develop the next stage of the project.

Minmetals estimated that Dugald River is an undeveloped zinc deposit located in North West Queensland, Australia. When developed, the project is expected to produce 2 million tonnes of ore and 200,000 tonnes of zinc in zinc concentrate per annum from an underground mine with an estimated mine life of over 22 years. Given the discrete nature of the Century ore body, current estimates put Century's mine life ending in 2015. Dugald River has the potential to replace nearly half this annual zinc production, Minmetals said.

Source:chinesestock.org