Chinova Resources moves on from receivership

Chinova Resources is looking ahead to a new chapter in its North-West Queensland copper-gold operations after emerging last month from a period of receivership. Chinova general manager Mick Breen said parent company Shanxi Donghui had made substantial progress in addressing its historical debt issues, with the majority of the debt settled. The company's cash flow was now robust, supported by significant improvements in metal recovery rates and ore grade, he said. "These advancements have led to a notable increase in concentrate production, driving the company's transition from loss to profitability," Mr Breen said. "Looking ahead, mining activities at the (Starra) 254 open pit are projected to continue through late next year, with processing of the remaining stockpiles extending into Q1 2026." Mr Breen said the operation anticipated strong revenue driven by a high recovery rate from its 88 per cent fresh reserve. Additionally, the company has ended its concentrate offtake agreement with Hartree and is exploring new concentrate sale agreements to enhance revenue generation and further strengthen its financial position. Image at top of page: Four truckloads of concentrate being dispatched from the Chinova operations. Mr Breen said also Chinova was planning to increase exploration efforts within its current tenement package to expand its resource base. Receivers and managers were appointed in August to the company, whose portfolio of copper-gold assets includes the Osborne mine and 2Mtpa flotation plant 150km south of Cloncurry and the Starra line, where it has been mining recently. Its projects in the region also include the Mount Dore heap leach project and the SWAN-Mount Elliott deposit, with an insitu mineral resource of 354 million tonnes at 0.6 per cent copper and 0.35g/t gold. Chinova's Osborne plant in North-West Queensland. The company also holds the Merlin molybdenum-rhenium project, with a mineral resource of 6.7Mt at 1.4 per cent molybdenum and 32ppm rhenium. Related: Receivers appointed for Chinova group Despite a brief disruption to open-pit mining activities during the receivership, Mr Breen said gold-copper concentrate production maintained steady levels, showcasing the resilience of the operation. "While there were challenges in talent retention during this period, the company is actively recruiting to strengthen the team and ensure the necessary resources are in place to achieve key business objectives safely and efficiently," he said. "The dedication of our employees and valued business partners has been nothing short of remarkable. "Thanks to their collective efforts, the site’s production and financial standing continue to improve, demonstrating a spirit of perseverance that has helped the team navigate challenges and emerge stronger." You may also like: https://industryqld.com.au/recapitalisation-plan-to-revive-true-north-copper/

Chinova Resources moves on from receivership

Industry Queensland

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