PERTH (miningweekly.com) – Gold miner Beadell Resources has produced the first iron-ore concentrate from its Tucano gold plant tailings through the newly commissioned magnetic separation plant, in Brazil.
The iron-ore was a by-product from the gold tailings.
The plant was constructed on time and within the $11.7-million budget, Beadell said on Wednesday. Commissioning and first product production took place on May 27 and the plant was now fully optimised to yield some 65% iron concentrate.
Beadell noted that the iron-ore produced was the subject of an offtake agreement with the Anglo Ferrous Brazil, which operates an iron-ore mine some 5 km from the Tucano mine site.
Payment for the product would be received once Anglo Ferrous' ship-loading facility in the nearby Port of Santana was reinstated within the next few months. In the meantime, the high-grade concentrate would be stockpiled in readiness for shipment.
Beadell reported that at current iron-ore prices, the concentrate would generate a net income of some $30/t, and had the potential to reduce the Tucano gold operation’s monthly cost by around $1-million.
Beadell’s MD Peter Bowler said that the company was investigating further cost-saving initiatives at the Tucano gold mine to ensure that production costs were within the bottom quartile globally.
The Tucano gold mine produced its first gold in December 2012. The project was expected to deliver some 200 000 oz during 2013.