PERTH (miningweekly.com) – Copper/gold miner PanAust on Thursday told shareholders that the company was on track to meet its full-year production guidance, after reporting a solid quarter in the three months to September.

During the quarter under review, the Phu Kham mine, in Laos, produced 16 562 t of copper in concentrate, which was in line with the 16 547 t produced in the previous quarter.

PanAust told shareholders that ore quality improved during the quarter under review, which resulted in new quarterly records for both copper and gold recovery rates.

Copper and gold head grades were expected to rise during the December quarter, making it the highest copper and gold production quarter in 2014, the miner said.

Meanwhile, the Ban Houayxai gold/silver project, also in Laos, delivered 22 541 oz of gold during the quarter, which was slightly below the 24 734 oz delivered in the previous quarter.

The miner reported a higher all-in sustaining cost of $1 095/oz during the September quarter, compared with the $998/oz reported in the three months to June.

PanAust noted that the scheduled lower head grades for both gold and silver led to the lower quarter-on-quarter metal production, which impacted directly on operating costs. An increase in waste removal at the North pit also contributed to an increase in sustaining costs; however, this was partially offset by a reduction in sustaining capital.

The Ban Houayxai operation was also expected to report better gold and silver head grades, as well as better recovery rates during the December quarter, which would lift production and reduce costs.

Looking ahead, PanAust noted that the Laos operations were on schedule to meet the upper-end of the 2014 production guidance of between 65 000 t and 70 000 t of copper in concentrate, and between 160 000 oz to 165 000 oz of gold, as well as some 1.2-million ounces of silver in concentrate.