Kagara (KZL)

Shares / Stock Code

KZL

Stock Exchange / Sharemarket

ax

Kagara (KZL) is a leading mineral explorer, developer and producer principally focused on base metals. The company owns a number of deposits situated in Queensland comprising the King Vol deposit. KZL has three operating base metal processing plants at Mt Garnet and Thalanga, with the fourth in the process of development at Mungana. Kagara listed on the Australian Stock Exchange on 22nd December, 1999. During fiscal 2008, the total copper production from Mt Garnet and Thalanga treatment facilities was up to 26,326 tons. During fiscal 2008, Mt Garnet polymetallic plant produced around 40,940 tons of contained zinc, 3,636 tons of contained copper and 9,359 tons of contained lead. Production from Mt Garnet copper circuit, during the fiscal year ended 30 June, 2008, was 7,264 tons of contained copper and from Thalanga plant was 15,426 tons of contained copper. Kangara has a strong growth profile and it is expected to produce +100,000tpa zinc metal and +45,000tpa copper metal by 2009/10. Kangara is also focused on the development of new exploration projects, Lounge Lizard Nickel Project and Admiral Bay Zinc Project (Western Australia). The Company is also actively involved in the exploration of gold deposits at Red Dome in North Queensland, located near the Mungana resource, targeting a conceptual 50 million tone resource.

Kagara History

Kagara was established in July 1981, with a vision to identify gemstones and tantalite through exploration and mining activities focused in the Forrestania, Southern Cross Greenstone Belt in Western Australia. Over the subsequent two years Kangara has changed its focus to gold exploration, with the discovery of various gold occurrences within its tenements. Kagara set up a copper circuit at Mt Garnet and acquired Thalanga base metal treatment plant in 2006. In November 2006, Kagara entered into an agreement for the acquisition of the highly strategic Lounge Lizard Nickel Project from LionOre Mining International Ltd for A$25 million. Lounge Lizard Nickel Project is situated in closet to the new Flying Fox Nickel Mine, operated by Western Areas NL. Kagara also commenced several other exciting development projects during 2007, comprising a drilling program at the Admiral Bay Zinc Project of worth A$15 million. The project is based in Western Australia and it is expected to have a 50-75 million tonne Inferred zinc/lead resource.