JOHANNESBURG (miningweekly.com) - LSE- and JSE-listed gold miner Central Rand Gold (CRG) produced 13 709 oz of gold in 2012, which was within 98% of the production guidance issued in its third-quarter interim management statement.
Underground production continued to be in line with the company’s expectations and was currently extracting its target run rate of 14 000 t/m.
CRG indicated that gold production in the 2012 full year had been impacted on by the previously reported processing difficulties and below-anticipated mine call factor (mcf) recovery in the third quarter of the year, which flowed into the fourth quarter of 2012.
As part of its focus on reducing gold losses throughout the production process, CRG identified that the majority of its gold losses, which reached up to 40%, occurred as a result of the ore handling during its primary and secondary crushing processes.
To minimise fine gold losses during the primary crushing stage, optimise tramming and eliminate external crushing costs, major modifications to the vertical shaft impactor crushing circuit were undertaken in January.
Batch testing of underground sulphide ore was currently under way.
A further contributor to the lower-than-anticipated production in the fourth quarter of 2012 was a marked decrease in the availability of the smaller Bateman Mill from 83% in November to 54% in December 2012 with an overall availability of about 70% for the fourth quarter.
After a seven-day shutdown of the carbon-in-pulp mill in early January, it was returned to full production on January 28. Production targets for both mills were expected to be consistently achieved.
CRG started toll-treating some of its surplus underground ore at the Mintails Mogale gold facility at the end of January to limit the production and cash losses incurred during the month.
CRG indicated that it would continue to focus on improving its mcf to achieve the more sustainable industry norm of between 75% and 85%. A further focus would be to review the suitability of its current metallurgical plants.
Based on the current underground production profile of 14 000 t/m being maintained, CRG expected full-year production of 14 500 oz to 15 000 oz.
Continuous cash preservation and optimisation efforts retained closing cash and cash equivalents at the end of December at $4.5-million, which was the same as that at September 30, 2012.
Meanwhile, an agreement was reached with the Trans Caledon Tunnel Authority (TCTA) on November 26, last year, for the donation of the pumps owned by CRG. As planned, construction of the high-density sludge-treatment plant started on January 14.
The TCTA was hopeful that the plant would be completed and operational during the course of the year.
As at December 31, the water was situated at 310 m below surface and the rate of rise remained between 0.2 m/d and 0.3 m/d.