Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Dual-listed Central Rand Gold (CRG) narrowed its net loss for the six months ended June 30 to $2.84-million, down from $4.87-million during the prior corresponding period.
CRG said the loss was driven by lower head grades and a lower reliance on toll revenue, which was partly offset by a focus on cost reduction.
All-in cash operating costs declined to $1 987/oz during the six-month period, against the prior year’s $2 425/oz.
In the period under review, the company slashed its water costs by 70% through the more effective use of recycled processed water, while staff and plant hire costs were also lower.
The upgrade of CRG’s plant also resulted in improved availability and operational efficiencies.
CRG reported revenue of $5.77-million for the period, down from $8.8-million previously.
MINING
CRG noted that, as its operations were established at 225 m below surface, the increase in the water table above this level to about 160 m below surface had undoubtedly had an impact.
“Mining operations have been limited to within the narrow band of 100 m below surface to 160 m below surface. Mining of the main reef within this mining band remains limited, owing to the shallower oxide ground conditions,” CRG said, adding that it was currently targeting new development to access unmined main reef areas.
CRG’s total production for the six-month period amounted to 88 161 t, down from 130 216 t during the prior corresponding period.
However, the company noted that the water table had now been stabilised as a result of the commissioning of the high-density sludge plant, operated by the Trans-Caledon Tunnel Authority.
“The increase in pumping volumes, in August 2014, is [also] expected to accelerate the drop in the water table,” the gold miner said.
Over the next six months, CRG would focus on underground mining at the Consolidated Main Reef mining area, which would largely be driven by the progress of the dewatering of the Witwatersrand central basin, as well as the grade on the North reef.
“The new mining area carries exciting opportunities and the company will start with surface mining and will further study the area to identify other target areas and future underground potential,” the company added.
Further, it would also focus on completing the metallurgical downstream leaching plant, to enable the operation to optimally process around 25 000 t/m.