Seismic Event Forces 29Metals to Withdraw Zinc Production Forecast
29Metals has withdrawn its full-year zinc production guidance following a seismic event at the Xantho Extended orebody in Western Australia, while maintaining outlooks for copper, gold, and silver.
- Seismic event disrupts access to high-grade zinc ore at Xantho Extended
- Full-year zinc production guidance withdrawn pending assessment
- Alternate lower-grade ore sources to be mined during access restrictions
- Copper, gold, and silver production guidance remains unchanged
- Update expected in upcoming September quarterly report
Seismic Event Shakes Golden Grove Operations
29Metals Limited has reported a significant seismic event at its Golden Grove mine site in Western Australia, specifically impacting the Xantho Extended orebody. While no injuries were sustained, the event has disrupted access to high-grade zinc ore, a key component of the company’s production portfolio.
Impact on Zinc Production and Guidance
As a result of the seismic disturbance, 29Metals has withdrawn its full-year zinc production guidance. The company is currently assessing the time required to reinstate ground support and safely resume production at previously planned levels. In the interim, mining will continue using alternative ore sources with lower zinc grades, which could affect overall zinc output and profitability.
Other Metals Unaffected for Now
Despite the setback with zinc, 29Metals has maintained its production guidance for copper, gold, and silver. This suggests that the disruption is localized to the zinc-rich Xantho Extended area and that other parts of the Golden Grove operation remain stable. Investors will be watching closely for the company’s upcoming quarterly report, due on 15 October 2025, for further clarity.
Broader Implications and Market Watch
The withdrawal of zinc guidance introduces uncertainty around 29Metals’ near-term financial performance, given zinc’s importance to the company’s revenue mix. The reliance on lower-grade ore sources may also impact margins. Market participants will be keen to see how quickly the company can restore full production and whether this event signals broader geological risks at Golden Grove.
Bottom Line?
29Metals faces a critical test in restoring zinc output, with market eyes fixed on the upcoming quarterly update.
Questions in the middle?
- How long will it take to fully reinstate production at Xantho Extended?
- What financial impact will the shift to lower-grade ore have on zinc margins?
- Could this seismic event indicate deeper geological instability at Golden Grove?