ARCON International expects to commission its Galmoy lead zinc mine and begin production of ore in the final quarter of 1996, the company has stated. Arcon has also discovered further mineralisation six kilometres away from Galmoy, opening up the prospect that more ore may become available in the future.
Speaking after the publication of Arcon's half year losses, executive director Mr Tony O'Reilly said that production in the first full year was likely to be about 400,000 tonnes, building up to a full production of 650,000 tonnes a year in year two.
Arcon has entered into arrangements with six European smelters, although the actual price paid, for the ore will be the market price at the time of delivery.
Galmoy reserves rose by 25 per cent last March when Arcon announced an increase in reserves of 1.7 million tonnes. Since then, the company has announced positive drilling results from the orebody's G zone, a resource of over 330,000 tonnes of high grade ore grading almost 29 per cent zinc equivalent.
In the six months to the end of February, Arcon had losses of £145,000, mainly due to well repairs at its 20 per cent owned Singleton oilfield in Britain.
