PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has reported record production during the three months to June, with the miner producing 79 985 oz of gold.

This was up some 23% on the previous quarter's production, and was above the run-rate required to achieve the 300 000 oz/y production target.

“Saracen has now cemented its position in the ranks of Australia’s leading midtier gold producers, with a production profile and growth outlook over the next few years which puts us in an enviable position in the ASX-listed gold sector,” said Saracen MD Raleigh Finlayson.

“During the quarter we began to reap the rewards of our substantial recent investment in growth. At Carosue Dam, the investment in twin declines at the Karari underground mine is now paying off with multiple stoping fronts established, helping to drive an increase in mine production and grade.

“At Thunderbox, mill throughput and recoveries increased markedly as a result of improvements to the plant and higher grade feed, which together drove record gold production,” Finlayson said.

Carosue Dam delivered 45 104 oz during the quarter under review, while the Thunderbox operation delivered a record 34 881 oz of gold.

Gold sales for the quarter reached 78 534 oz, at an average sales price of A$1 621/oz, generating revenues of A$127-million, while Saracen also reported cash and equivalents of A$45.2-million at the end of the quarter.

Finlayson said that the company’s strengthening balance sheet meant that Saracen could continue to fund its ongoing commitment to aggressive exploration across its portfolio, which was also delivering impressive results.

“Recent drilling at the Karari underground mine is beginning to show the true potential of this large and growing gold system, while at Thunderbox drilling has extended the thick A Zone mineralisation at depth, highlighting the potential for a multiyear underground mine.”