Photo by: Duane Daws
TORONTO (miningweekly.com) – Canadian gold producer Aurico Gold has recorded its eighth consecutive quarter of production growth, underpinned by record production from the cornerstone Young-Davidson mine, in Ontario.
For the three months ended June 30, the TSX- and NYSE-listed miner reported total gold output from Young-Davidson and its El Chanate mine, in Mexico, of 56 198 oz, up 17% over the comparable period in 2013.
Consolidated cash costs an ounce rose 22% to $801.
The Young-Davidson mine recorded record output of 40 166 oz of yellow metal in the quarter, representing an increase of 5 062 oz, or 14%, over the prior quarter. The operation was expected to deliver more period-over-period production increases in future as the underground mine ramps up to targeted levels.
Underground cash costs for the quarter were $803/oz and were expected to decline throughout the year, corresponding with planned quarter-over-quarter increases in underground productivity. Total cash costs for the quarter, which included the openpit mine and openpit stockpile, were $871/oz.
Aurico said the short-life openpit mine was fully depleted in early June as planned, with operations now completely shifting to the underground mine.
During the quarter, the operation was able to fully use surplus paste-fill capacity to accelerate the filling of additional mined-out stopes to potentially accelerate the planned underground ramp-up schedule through earlier access to secondary stopes. The capacity of the paste-fill plant would fully support the underground ramp-up to 8 000 t/d at the end of 2016.
“With production levels ahead of plan and the related cost efficiencies being realised, we are increasingly confident that Young-Davidson will be generating positive free cash flow by the end of this year. Company-wide, we remain firmly on track to meet our yearly 2014 production guidance and the company remains well positioned with a solid balance sheet, a [high-]quality asset base and a team that is committed to long-term shareholder value creation,” president and CEO Scott Perry said.