PERTH (miningweekly.com) – Gold miner Doray Minerals has again increased production for the quarter ended June 30, which resulted in full-year production increasing by more than 15%.

For the three months to June, gold production from the Andy Well mine, in Western Australia, reached 28 180 oz, up from the 21 328 oz produced in the previous quarter, while C1 cash costs reduced from the A$556/oz reported in the March quarter to A$518/oz.

Doray MD Allan Kelly said that the company delivered record gold production in the three months to June, with Doray not only delivering on its increased 2015 production guidance of between 85 000 oz and 90 000 oz, but also seeing improvements on every metric when compared with the previous quarter.

For the full 2015, gold production reached 88 736 oz, up from the 76 785 oz produced in the 2014 financial year.

C1 cash operating costs for the full year were also at the lower end of the guidance of between A$600/oz and A$700/oz, at A$607/oz.

“We’ve had a great finish to the second year of operations at Andy Well, with consistent improvements throughout the year. We also continue to have exploration success from near-mine through to our regional greenfield projects, while, at the same time, launching and completing a successful takeover of Mutiny Gold,” Kelly said.

During the quarter under review, Doray approved the development of the newly acquired Deflector gold project following the completion of a detailed project review.

The review estimated that a preproduction capital investment of some A$88.2-million would be required to start production at Deflector, with the project estimated to result in life-of-mine revenues of A$648.1-million, at a gold price of A$1 150/oz.

The Deflector openpit was expected to deliver 61 972 oz of gold, while the underground mine would deliver 348 592 oz of gold, over a mine life of about six years. Yearly production had been targeted at between 61 000 oz and 74 500 oz of gold.

With the successful construction and commissioning of the Deflector project, Doray was targeting yearly production of some 160 000 oz/y with an average all-in sustaining cost of less than A$1 000/oz between the two mines.