After slipping through the summer, lead made a  slight recovery over the last week. After reaching a low of US$0.75 per pound August 14, it is now back up to nearly US$0.88 per pound.

With the harsh blows being meted out to metal exploration and mining companies in the last few months, progress comes in small steps.

Some examples

* Lundin Mining Corp. (TSX: LUN) is back up over US$5 per share from its August 12 low of US$4.64.

* Capstone Mining Corp. (TSX: CS) is back up over US$3 per share this week and rising, after recently dropping to US$2.91. It was at US$3.06 as of August 20.

* Hathor Exploration Limited (TSX: HAT), unlike many other companies in the sector, has been on an erratic climb over the summer. It has recently been fluctuating well over US$3 per share.

Despite such meager gains, cuts are still necessary.

On August 20, Perilya decided that it would be making staff cuts at the Broken Hill lead, zinc and silver mine. It plans to reduce its current 720 employees to 320.

The company has also decided to cut back on ore mass production in favour of smaller, higher-grade amounts. While lead production will remain at 50,000 tonnes per year, this decision will bring zinc production down about 40,000 tonnes to 55,000 tonnes a year. Perilya has also closed out its hedge book receiving US$60.3 million in cash, according to a press release.

“The company is confident that the Broken Hill operations can be sustained to maintain a level of continuity of production and one that is financially viable at current metal prices for at least the next two to three years, without significantly compromising the longer-term life of mine,” said Patrick O’Connor, Executive Chairman for Perilya in the statement. 

CBH Resources Ltd. had made a similar move earlier this month, cutting about two thirds of its staff, as well as Xstrata, which had shut production at its Australian-based Lennard Shelf lead and zinc mine mid-July.

With drilling and exploration projects continuing and expanding, an upswing for lead might be more of a long-term prospect.

Acadian Mining Corp. (TSX: ADA) has released an update on its drilling results for its Getty zinc-lead deposit. Seventy-five additional holes have been drilled, bringing the total number to 129. Drilling results show potential for a bulk-tonnage, open-pit deposit 1,700 metres from the mill at Scotia mine, according to Acadian’s press release. Its top highlight includes intersects at 6 metres of 11.22 per cent zinc plus lead.

Arian Silver Corporation (TSX: AGQ) also released further results with an estimation upgrade at its San Jose property in Zacatecas State, Mexico. With a 59 per cent estimated tonnage upgrade in total since March, the company announced an 85 per cent increase in lead to 120.4 M pounds, a 69 per cent zinc increase to 247.8 M pounds and a 55 per cent increase in silver to 42.78 M ounces. These estimates are based on the first phase of Arian’s 71 drill holes, totalling 11,772 metres, according to a company press release.

Canadian Zinc Corporation (TSX: CZN) is now into the next phase of its permitting process for its Prairie Creek Mine. Operating permits have been referred for environmental assessment to the Mackenzie Valley Environmental Impact and Review Board. The board, however, received a number of comments regarding the project from parties such as Indian and Northern Affairs Canada and various First Nations. The environmental assessment is in response to a request from the Nahanni Butte Dene Band, as per Article 12 of the Settlement Agreement between the Dehcho First Nations and the Government of Canada. The Dehcho First Nations should have been consulted regarding the memorandum of understanding that was entered into by Canadian Zinc and Parks Canada, said Grand Chief Gerald Antoine in a press release.

The memorandum was to ensure that the expansion of Nahanni National Park Reserve and the development of the Prairie Creek Mine did not conflict.

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