West Africa-focussed Avesoro Resources’ gold production increased by 247% year-on-year to 175 492 oz for the nine months ended September 30.

This, the miner said on Tuesday, is in line with the full-year output guidance.

CEO Serhan Umurhan on Tuesday said Avesoro remains on track to deliver its 2018 financial year production guidance of between 220 000 oz and 240 000 oz of gold.

This is despite a 22% quarter-on-quarter decrease in production to 47 177 oz for the third quarter of this year, as a result of a scheduled reduction in high-grade mill feed from the Youga mine’s Balogo satellite deposit.

Revenue from gold sales of 48 974 oz in the quarter amounted to $59.2-million at an average realised gold price of $1 210/oz.

Operating cash costs were $877/oz sold in the quarter versus $698/oz in the previous quarter, which is attributable to lower gold sales in the quarter, as well as an increase in unit mining costs at the New Liberty mine.

All-in sustaining costs (AISC) were $1 155/oz in the quarter, compared with $985/oz in the previous quarter.

Cash costs increased to $877/oz, owing to lower production at Youga and a temporary increase in unit mining costs at New Liberty, which added about $100/oz to these numbers.

Umurhan warned that, while Avesoro remains on track to deliver guided production and AISC, full-year cash costs are now expected to be between 10% and 20% higher than the previous guidance, primarily as a result of the higher mining costs at New Liberty owing to mining fleet utilisation being lower than planned.

He further highlighted that during the quarter, the total material moved, about 9.78-million tonnes, was in line with that achieved during the previous quarter, and reflects the company’s continued underlying improvements in productivity, despite rainfall in Burkina Faso being three times the historic average.

At New Liberty, quarter-on-quarter ore production increased by 21 000 t, run-of-mine grade remained stable and waste tonnes were unchanged.

The wet season did, however, reduce the miner’s ability to fully utilise the larger New Liberty mining fleet during the quarter which, combined with an increase in drill and blast costs and fuel prices, resulted in higher unit mining costs than in the previous quarters of this year.

“In the fourth quarter we expect both mining rates, unit costs and grade to improve at New Liberty and for this to continue through 2019,” Umurhan said.

Exploration, he added, continues across the portfolio, where the miner is targeting adding a further one-million ounces to its current mineral reserves.

“The $25-million budget includes assaying, engineering studies, resource modelling and the independent technical reports and is a discretionary investment which [Avesoro] believes is already adding signficiant shareholder value with the updated National Instrument (NI) 43-101 reports for both New Liberty and Youga, which are expected early next year,” Umurhan elaborated.

The updated report will include an underground prefeasibility study at the main New Liberty deposit combined with the first reserves from Ndablama, a satellite deposit about 45 km from the processing plant.

Following that of New Liberty, Avesoro expects to publish an updated NI 43-101 for Youga, which is anticipated to include additional reserves from Gassore and Ouare.