TORONTO (miningweekly.com) – Vancouver-based Red Back Mining produced 342 085 oz of gold last year from its two African mines, and expects output to rise to between 485 000 oz and 525 000 oz in 2010.

The 2009 figures represent a 31% increase compared with a year earlier.

For the fourth quarter, Red Back reported production of 111 193 oz, a record for the company.

Red Back owns the Tasiast gold mine, in Mauritania, and the Chirano operation, in Ghana, both of which underwent expansions in 2009.

“We are extremely pleased with our achievements in 2009 with both CIL plants having been expanded and the Akwaaba Deeps underground mine at Chirano and the dump leach operation at Tasiast being successfully commissioned, CEO Richard Clark said in a statement.

“2010 represents the first significant production increase for the company following completion of the plant expansions.”

Tasiast is expected to produce between 245 000 oz and 265 000 oz this year, at a cash operating cost of between $325/oz and $350/oz.

Capital expenditures at Tasiast are budgeted at $48 million, excluding exploration.

At Chirano, output is forecast at 240 000 oz to 260 000 oz, at a cash operating cost of between $460/oz and $490/oz.

Red Back has budgeted capital expenditures at Chirano of $77-million.

“The addition of heap leach production from Tasiast and development of the new Paboase South underground mine at Chirano will result in further production increases for 2011, towards an annual target of approximately 800 000 oz in 2012,” Clark said.

Shares in Red Back slid 0,92% on Friday morning, to C$17,23 apiece by 10:07 in Toronto.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.