After months of economic uncertainty and unsuccessful joint-venture discussions with neighbouring Chinese-owned Perilya Mine, CBH has received the necessary approvals to commence mining operations at Rasp.

These approvals allow for the mining and crushing of 120,000 tonnes of ore per annum from Rasp for two years and for this ore to be transported to CBH’s Endeavor Mine for processing.

Underground mining operations are anticipated to commence by mid-2010.

Managing director and CEO Stephen Dennis said approval from Industry and Investment NSW (formerly Department of Primary Industries) was received in December for underground mining operations.

Broken Hill City Council also approved the surface activities - crushing, stock piling and the transportation of ore.

“Mining operations will focus on recovering ore from the high grade Main Lode Pillar areas,” Mr Dennis said.

“The expected head grade of these operations will be 8.8 per cent, lead and 209 g/t silver, with 8,000t of lead concentrate and 12,000t of zinc concentrate to be produced during the first year of operations.

“We are very pleased that the approvals are in place for Stage 1 of the Rasp Mine.

“CBH will now work to bring the mine into production by the middle of the year.

“Initially we will be employing up to 40 new staff.

“During the year we will also be seeking approvals and working on plans for Stage 2 of the mine which will see production of up to 750,000 tonnes per year for approximately 15 years.

“This is a major strategic step forward for CBH and a significant development for the Broken Hill community.”

Meanwhile CBH has also announced higher than expected zinc and lead output for the fourth quarter at Endeavor.

“The company produced 14,228 tonnes of zinc in concentrate and 5,951 tonnes of lead in the fourth quarter 2009, exceeding forecasts by 13 per cent and 8 per cent respectively,” Mr Dennis said.

“Mill throughput at the Endeavor mine during the first half of the 2009-2010 financial year ending June 30 totaled 231,295 tonnes, 10 per cent above forecast.

“Production ramp-up to 850,000 tonnes mill throughput a year is ahead of schedule and due to start in mid-2010.”