PERTH (miningweekly.com) – Gold production from the Andy Well operation, in Western Australia, has remained steady during the three months to September, with the project operating to expectations, owner Doray Minerals reported on Tuesday.
During the first quarter under review, gold production at Andy Well reached 18 265 oz, which was slightly below the 18 767 oz produced in the previous quarter.
A record total of 73 835 t of ore was milled during the quarter, with a head grade of 7.82 g/t gold.
“Doray continues to meet both its production and cost forecasts and is pleased the quarter also produced record mill throughput,” said MD Allan Kelly, adding that production for the 2014/15 financial year was expected to reach between 77 000 oz and 85 000 oz, with forecast operating cost estimated at between A$700/oz and A$800/oz.
This was higher than the A$522/oz achieved at the end of the 2014 financial year in June.
“The increase in forecast operating cost, compared with the 2014 financial year, results from lower grade material being mined from underground in the second year, as predicted in the 2012 bankable feasibility study,” Kelly said.
He noted, however, that the increase in cost would be partially offset during the second half of the financial year by mining and processing of higher grade ore from the Stage 2 openpit operation.