Photo by: Bloomberg
PERTH (miningweekly.com) – Australian gold major Newcrest Mining on Friday increased its production expectations for the 2015 financial year, as the ramp-up of the Cadia East operation, in New South Wales, continued faster than expected.
Newcrest upped its gold production expectations from between 2.2-million and 2.4-million ounces, to between 2.3-million and 2.5-million ounces, while copper production expectations have also been increased from the previous estimate of between 75 000 t and 85 000 t, to between 90 000 t and 100 000 t.
During the quarter ended December, Newcrest produced 577 100 oz of gold, which was an increase from the 561 731 oz of gold produced during the previous quarter.
The Cadia East operation delivered 102 347 oz of gold during the quarter, with Newcrest telling shareholders that breakthrough to the surface of Panel Cave 1 occurred ahead of schedule during the quarter.
The ramp-up of the Cadia East Panel Cave 1 continued with concrete roads being completed, and two high capacity loaders delivered during the quarter.
Meanwhile, the Lihir operation, in Papua New Guinea, saw a 4% increase in production during the quarter, with the mine delivering 160 803 oz of gold. The increased production was attributed to a higher percentage of ore feed being sourced ex-pit, a higher percentage of ore being fed directly into the autoclaves, and a marginal increase in head grade.
However, production at Lihir was also below expectations during the quarter, with maintenance issued impacting on the operation.
The Hidden Valley mine, also in Papua New Guinea, was adversely impacted by a number of factors during the quarter, including a fatality at the mine site during December. As a result, gold production for the period declined to 21 546 oz, while silver production declined to 227 279 oz.
The Gosowong project, in Indonesia, saw a slightly lower output during the three months to December, as increased mine production and mill throughput was offset by lower gold grades.
The Gosowong mine produced 66 464 oz of gold during the quarter, compared with 67 676 oz delivered in the previous quarter.
The Telfer operation, in Western Australia, meanwhile, saw a 4% increase in gold production during the quarter, producing 140 195 oz of gold, as underground mine ore production increased by 6%.