Takeover target Perilya Ltd said an update on resources at its downsized Broken Hill lead and zinc mine could "significantly" extend the mine's life, based on conservative metals prices, beyond the previously advised three years.
In its September quarterly report, the company said the resources update is expected next month, and could expand the operation's mine life.
In August, the miner downsized the operations at Broken Hill by halving ore production and slashing 440 jobs as part of a restructure to keep the operation viable amidst falling commodity prices.
As a result, contained zinc production fell 14 per cent to 24,300 tonnes while lead production dropped 22 per cent to 10,400t.
Net cash costs over the quarter rose from $US1.01 per pound of payable zinc to $US1.36.
The company is aiming towards production cash costs in the US60 cents and US65c range.
Perilya chairman Patrick O'Connor said resizing costs were incurred during the September quarter and therefore had an impact on the company's financial performance for the period.
At the end of the period, cash and investments totaled $73.6 million and the company had no corporate debt.
Meanwhile, Perilya Ltd says it has received expressions of interest for its Mount Oxide copper project following the terminated deal with a West Perth company last week.
The company did not detail which companies were interested in the project, only saying that interest had been received for participation in the project's development.
Last week, Chalice Gold Mines Ltd requested Perilya to terminate the sale deal, citing the fall in copper prices.
Perilya waiting on CBH Resources Ltd's bidder's statement before delivering a recommendation to shareholders on the takeover offer.
Shares in Perilya jumped over 51 per cent to close at 23.5 cents.
