Ivernia West is broadly on target to bring the Lisheen zinc mine into production in a year's time.

Despite encountering difficult ground conditions and unexpected water which crosses the path of the decline, the mine should be operational in October next year, just one month behind schedule, said managing director Mr David Hough. "An appropriate pumping and engineering programme to deal with the water feature has been implemented and is expected to overcome this difficulty in the near future," the chairman Mr Clayton Love Jnr said.

"Directional drilling indicates that good-quality rock is present ahead of the softer ground conditions and the water feature."

Mr Hough, commenting after publication of the group's interim results, said the difficulties are leading to extra costs, but only of amounts that are within estimated contingencies. The total cost of the project, which is jointly owned with Minorco, will be within the $266-million budget, he added. The initial civil works, site roads and infrastructure have been completed. To date, the decline has been advanced to 750 metres. The tailings management facility construction and lining has been completed.

Ivernia said a final decision is "imminent" on the choice of port to be used for shipping the concentrates. Three ports - Cork, Waterford and Foynes - are being considered. Although the price of zinc is at its lowest for over four years, Ivernia is confident that the outlook for zinc demand and prices is positive.

Mr Hough said the group expects to spend $1.5 million on developing its other Irish interests. And it will spend $0.6 million in the US. The latest results show new expenditure of £12.4 million in the half-year to June 30th, 1998. This mainly reflects the group's 50 per cent share of the construction expenditure on the Lisheen mine project.