Millennium on track for full year targets

12th October 2017 By: Esmarie Swanepoel - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed gold miner Millennium Minerals told shareholders on Thursday that the company was on track to achieve its full year production targets after another solid quarter from its Nullagine mine, in Western Australia.

The Nullagine operation delivered 16 007 oz of gold during the three months to September, which was down from the 18 983 oz in the previous quarter, with all-in sustaining costs for the September quarter reported at A$1 470/oz.

CEO Peter Cash told shareholders that the September quarter was a pivotal period for Millennium, laying the foundation for its strategy to deliver a minimum five-year mine life at Nullagine, based on gold production of 100 000 oz/y.

“Millennium achieved all of its key objectives in the September quarter, ensuring we are well on track to meet both our short-term and long-term goals.

“We hit our production and cost guidance for the September quarter and, at the same time, we made the capital investments which will underpin substantially higher production in the December quarter. As a result, we are comfortably on track to meet our guidance for 2017.”

During the quarter under review, Millennium invested capital to establish access to larger, longer-term ore sources as its focus shifted away from small, shorter-term satellite pits, which have been the mainstay of production in the past.

Cash told shareholders that the completion of the Bartons cut-back and mine development for the high-grade Majuba Hill deposit would also underpin a significant increase in gold production in the December quarter, with a corresponding decrease in cash costs now that the capital development items had been completed.

“In addition, we are now on the cusp of developing our first ever underground mine at Nullagine with the completion of a maiden mineral resource estimate and scoping study for the Bartons underground development.

“Feasibility studies on both the processing plant upgrade and the Bartons underground development are now under way as part of our strategy to grow both production and mine life at Nullagine.”