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Arcon Int.Resources (AIN)

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Friday 20 June, 2003

Arcon Int.Resources

AGM Statement

Arcon International Resources PLC
20 June 2003

                       ARCON International Resources plc


                  Annual Meeting told new high grade resource

               will lead to increased production and lower costs

DUBLIN & LONDON: 20 June 2003 - ARCON International Resources Plc reported to
shareholders at the annual general meeting in Dublin today that its discovery
late last year of a new high grade area of mineralisation at the Galmoy Mine has
transformed the company over the past 12 months.

The resource estimate for the new R Zone, which lies approximately 125 metres to
the southeast of the CW South orebody, the main area of current operations, is
2.3 million tonnes, grading 19% zinc (Zn), which is approximately double the
average grade on the CW ore body. The new resource also contains significant
amounts of lead and silver.

ARCON's Chief Executive, Kevin Ross, told shareholders that this new resource
would double the mine's contained metal content and extend the mine's life into
the next decade. The company was focussed on bringing this new resource into
production as soon as possible in order to maximise shareholder value and
generate positive cash flow in the current low zinc price environment.

'We are well advanced in the mining of a 550 metre drive from the existing CW
infrastructure to reach the R Zone early in the third quarter 2003. We will then
be able to improve the mill head grade by blending a small portion of ore from
the R Zone with that from the remaining reserves. This will allow us to increase
concentrate production further and should also lead to a reduction in our cash
production costs.'

ARCON's production target for 2003 is 68,000 tonnes of contained metal.
Operational changes at the Galmoy mine have already achieved significant
increases in production. Ore hoisted had increased 25% between 2000 and 2002 and
is expected to rise by another 4% this year and a further 9% in 2004. Both the
grade of ore delivered to the mill and the recovery rate were also expected to
improve and should lead to approximately a 75% increase in concentrate
production in 2004 compared to that of 2000. At the same time cash costs of
production have fallen by 20% between 2000 and 2002 despite the adverse movement
in exchange rates and are expected to fall even further over the next two years.

'Whilst we have largely defined the R Zone, we have identified other similar
anomalies to the east of this area which we hope will have similar potential.
All of these positive developments will move us up the international production
league and, with our focus on cost efficiencies and the predicted recovery in
zinc prices, will strengthen the company's position for the years ahead,' said

ENDS     20th June 2003

For further information

Kevin Ross                       Pauline McAlester    Keith Irons

ARCON International Resources    Murray Consultants   Bankside Consultants

+353 (56) 37 100                 +353 (1) 498 0300    +44 (207) 444 4155

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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