PERTH (miningweekly.com) - Gold miner Navigator Resources has told shareholders that it would need more cash for working capital, after its Bronzewing mine failed to deliver on production forecasts during the three months to December.
The Bronzewing mine produced 17 431 oz of gold during the December quarter, which was below the revised forecast of between 18 000 oz and 20 000 oz.
The miner said that mechanical issues had plagued the Bronzewing processing facility, adding that gold mined for the quarter reached 23 971 oz.
Navigator told shareholders that cash flows for the 2013 financial year were likely to break-even, after servicing all debts, fees and royalties. However, as a result of the quarterly gold production being significantly lower than forecast, the company said it would likely require additional working capital funding.
The miner said it was in discussions with shareholder Au Mining to satisfy this funding requirement.
Looking ahead, Navigator predicted that the Bronzewing project would deliver between 17 000 oz and 20 000 oz for the March quarter, inclusive of gold-in-circuit.
Navigator recently reviewed the existing mine plan and the Bronzewing operation as a whole, which resulted in substantial changes to the pit sequencing, strip ratios and configuration of the heavy mining equipment fleet.
The new mine plan also substantially changed the mining sequence of the pit, resulting in a smaller, shallower pit and the deferral of the Cockburn pit western wall cutback.
The smaller pit design would result in lower total gold production over the next two years than was forecast in the previous plan, but without the cost of the higher strip ratio of the existing mine plan.