The unexpected result following a disappointing previous 12 months was achieved under a new operating plan involving significant improvements in ore production, higher grades and increased mill throughput by a downsized workforce.

Positive cash flow for the period was also reported with zinc and lead metal output up 23 per cent and 18 per cent respectively compared to the previous quarter.

Other production highlights for the quarter to September 30 included ore mined 236,809 tonnes (100 per cent of budget), development performance 546.5 metres and pastefilled placed 83,269 cubic metres.

The strong results, CBH reported, were achieved not withstanding there had been a significant reduction in personnel and equipment as a result of the new lower tonnage/higher grade operating plan.

Operating changes made during the September quarter included the removal of Gulf roadtrains with ore haulage now totally performed with standard mine operating trucks, a reduction in pastefill and development requirements, and a reduced cost structure following consequential downsizing in personnel and mining equipment.

In another encouraging development for the company and Cobar’s minerals-based economy, a re-evaluation of ore reserves at Endeavor has indicated a revised total of 8.4 million tonnes supporting a mine life in excess of 10 years.

Managing director Stephen Dennis said falling prices and rising costs had seen a number of zinc producers throughout the world announce cost-cutting measures, production cutbacks and mine closures.

CBH, Mr Dennis said, had responded during this period by announcing a new higher- grade/lower-tonnage production plan at Endeavor and the company was focused on ensuring its operations remained viable during this difficult period.

Meanwhile, the company’s Rasp Mine project in Broken Hill has been placed on care and maintenance pending Government environmental approvals and a development decision in regard to the outcome of a recently announced takeover offer for Perilya Ltd.

The Hera gold and base metal project near Nymagee is still under evaluation as a potential ore source for the Endeavor Mine with an investment decision expected within the next 12 months.

CBH’s Newcastle Shiploader continues to service Endeavor and three other NSW mines with concentrate shipments loaded for the September quarter exceeding 83,000 tonnes.