CBH goes underground for Panorama

CBH Resources has decided to develop its Panorama copper-zinc project in the Pilbara as an underground mine with capital costs estimated at $150 million.

The Sydney-based company today said a recent scoping study on the project revealed it was more economical to develop the project as an underground operation.

Panorama is located about 160km from Port Hedland.

The study found that an underground operation will have a production rate of 600,000 tonnes each year over an initial mine life of seven years.

It has been estimated that the mine will produce a total of 185,000t of zinc, 70,000t of copper and 880,000 ounces of silver throughout its anticipated life.

CBH said it is currently quantifying the underground mine reserve. The resource stands at 6.3 million tonnes at 3.3 per cent zinc and 0.5 per cent copper.

"Current indications are that the required capital expenditure for the underground mine development will be approximately A$150 million based on a production rate of 600,000 tonnes per annum," CBH said in a statement.

"GR Engineering Services has been engaged to validate the project capital cost estimates with this work expected to be completed within two months."

Meantime, CBH has appointed PCF Capital Group to find a suitable partner to develop Panorama.