Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed junior A1 Consolidated Gold delighted shareholders on Friday by announcing the first gold pour at its Maldon treatment plant, in Victoria, resulting in a 25% increase in its share price.
The first gold dore, produced earlier this week, weighed 146.3 oz, and was produced from the processing of low-grade stockpiled ore at the Maldon treatment plant.
“This is a major milestone for our company. In the two months since we took management control of the Maldon gold operation, we have implemented our mill improvement programme on time and on budget, we have developed the first narrow vein stope at the Alliance South deposit, and now we have produced our first gold bar,” said A1 MD Dennis Clark.
The Maldon project was acquired from Octagonal Resources in November last year, in exchange for A$5.1-million A1 shares. The acquisition included the 150 000 t/y carbon-in-leach processing plant.
“With this achievement under our belt, I’m looking forward to ongoing cash flow that will help fund the start of production mining at the A1 gold mine.”
Clark noted that the development of the A1 gold mine was the company’s primary objective.
A scoping study for the A1 mine revealed that the project would deliver about 30 000 oz/y over a three-year mine life, and the Stage 1 project would require a capital investment of A$2.9-million.
A1 was trading at a high of 4.1c a share on Friday up from a low of 3.4c a share.