JOHANNESBURG (miningweekly.com) – Aim-listed gold-miner Avocet Mining’s output increased to 28 734 oz in the September quarter, boosted by production from the Penjom mine, in Malaysia, and the North Lanut mine in Indonesia.
The company’s gold output increased by 3%, when compared with the 27 756 oz produced in the same quarter last year.
The Penjom mine’s output increased by 5%, as ore tons treated increased and grades and recovery were broadly similar.
Total cash costs in the quarter were $10,8-million, 3% above the previous quarter of $10,5-million, principally owing to the timing of mobile fleet maintenance.
Higher gold production resulted in cash costs of $660/oz before adjustment for deferred stripping, slightly better than the previous quarter, Avocet noted.
During the quarter, work progressed on a revised resource model at Penjom, including new structural interpretations based on several years of structural mapping data. Initial testing of the resulting interim model against historic data indicated that the interim model predicted grades more accurately than the previous model.
Drilling below and adjacent to the current pit has identified orebody extensions to the Kalampong main orebody, indicating a potential expanded resource with future underground mining potential. The complex structurally controlled nature of the mineralisation at Penjom meant that the model had not yet provided sufficient certainty to support a revised resource report.
This was expected to be completed before the end of December.
Based on the interim resource model, gold production in the next two quarters was expected to continue at about 5 000 oz/m, with the exception of October, when production would be lower as the result of a planned shutdown for a mill liner change.
Production at the North Lanut's gold project reached 12 333 oz during the period, which was 4% up on the previous quarter, reflecting the benefit of higher tons irrigated since March, and also continuing efficiencies in the leaching process, including improved piping and pumping to allow an increase in active irrigation area, and improvements to increase stripping capacity.
Avocet reported that during the quarter ore was sourced from the Riska pit and from the new Rasik pit. As expected, a higher proportion of material from Rasik meant that grades were lower than previously, but the more oxide nature of ore from this deposit, which leaches more easily, meant that the impact of lower grades was more than compensated by higher recoveries.
Cash costs of $507/oz were in line with the previous quarter of $501/oz.
Production in the next two quarters was expected to continue at a rate of about 4 000 oz/m.
At the Inata project, in Burkina Faso, the most likely date for first gold pour was still expected to be January 2010, however, an earlier date may be achievable if all remaining construction and commissioning tasks proceeded without significant problems.
Construction work has also progressed ahead of plan over recent weeks, including rectification work to the gravity tower and carbon in leach tank banding, both of which were close to completion.
Avocet noted that the remaining elements of construction were progressing according to schedule and commissioning of several elements of the plant has started in parallel with construction in order to expedite successful commissioning of the plant in its entirety and a sustainable ramp-up to full production.
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