Production at the Myra Falls zinc mine in British Columbia is expected to "gradually improve" throughout the remainder of the year as a new management structure begins and operating problems are addressed, said its Canadian owner Breakwater Resources Ltd. (BWLRF).

Production was hindered during the second quarter due to the lack of working areas underground, delays in improving the underground infrastructure and problems with underground equipment availability, Breakwater said.

The mine produced 17,005 metric tons of zinc concentrate in the second quarterdown from 26,664 tons the year earlier. Zinc metal in concentrate output was down at 8,730 tons from 14,471 tons in the same period of 2005, Breakwater said.

The mine also produces a small amount of byproduct copper and gold.

Looking ahead, Breakwater said the Myra Falls flotation plant is currently being modified to enhance selective copper flotation and to produce a separate lead concentrate.

"The test work indicated that this would increase copper recoveries from the current 70% range to a range of 85-90%," Breakwater said. "In turn, these modifications will enable better overall zinc recoveries in the zinc circuit and allow for production of higher grade concentrate," the company said.

Construction and installation are "progressing well" and are on schedule for completion in the third quarter of 2006.