PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has reported a 12% increase in its gold reserves, which now stand at a record 3.7-million ounces.

The reserve estimate at the end of June compared with the 3.3-million-ounce estimate at the end of June last year, and showed a 400 000 oz increase, despite a 396 999 oz depletion.

Gold reserves at the Carosue Dam operation increased by 85%, to 750 000 oz, while reserves at Thunderbox increased by 22%, to 926 000 oz. Saracen told shareholders on Tuesday that the company was rapidly approaching its four-million-ounce reserve target well ahead of its five-year schedule.

“These record reserves and growth outlook highlight Saracen’s key strengths on several fronts,” said MD Raleigh Finlayson.

“To grow reserves by 400 000 oz/y despite depletion is a strong result. These ounces are made much more valuable by the fact that they are all in Western Australia and within very close proximity to existing processing facilities.

“These robust reserves ensure we have long-term, sustainable production in what is almost certainly the best place in the world to be a gold miner. It also means we can invest in production growth with total confidence. This in turn means that we can lower costs and help to insulate the business.”

Saracen is investing A$43-million in exploration during this financial year, with Finlayson telling shareholders that there was a pipeline of strong organic growth opportunities, which could further drive increases in mine life and production.

The ASX-listed gold miner is targeting production of between 380 000 oz and 400 000 oz for the 2021 financial year, at all-in sustaining costs of between A$1 200/oz and A$1 300/oz, with growth capital for the same year expected at A$185-million.

Production will ramp up to 450 000 oz/y by 2023, and current reserves are expected to support this production rate for at least seven years.

The Thunderbox mill will be expanded from its current 2.8-million-tonne-a-year capacity to 3.5-million tonne a year in 2022, at a capital cost of A$25-million, while the mill at Carosue Dam will be expanded from the current 2.4-million tonnes a year to 3.2-million tonnes a year.

Around 250 000 oz/y of gold will be produced at the expanded Carosue Dam operation, and around 200 000 oz/y from Thunderbox.