JOHANNESBURG (miningweekly.com) – Diversified low-cost gold producer Nordgold, which operates in Africa and Europe, on Tuesday reported that its gold output for the quarter ended March 31, at 266 000 oz, was 26% higher year-on-year.
The company added that seven of its nine mines had achieved a year-on-year increase in production, with double-digit output growth recorded at its Bissa and Lefa mines in West Africa.
In the first three months of this year, the Bissa mine, in Burkina Faso, produced 75 800 oz of refined gold, up 11% compared with the 68 000 oz produced in the March 2014 quarter.
On a quarter-on-quarter basis, production rose 60% from the 47 400 oz produced in the three months to December 31, 2014.
Nordgold said the construction of an oxygen plant and the installation of a lead nitrate dosing system, which would improve recovery, as well as a pebble crusher to assist throughput from processing future harder ores, would be completed and commissioned in the second quarter.
At Nordgold’s Taparko mine, also in Burkina Faso, gold production fell by 10% year-on-year to 29 900 oz, but increased by 27% compared with the 23 600 oz produced in the December quarter.
An oxygen plant at Taparko would be commissioned at the end of April to increase recovery.
Output at the company’s Lefa mine, in Guinea, increased by 49% year-on-year to 59 800 oz, owing to the improvement of all mining and processing parameters. Production was, however, down 5% quarter-on-quarter.
Construction had started on the reclaim feeder in the process plant, which would further increase productivity and improve ore blend consistency. This would be completed in the fourth quarter.
Meanwhile, at Lefa, Nordgold had also restarted regional exploration with the aim of making a new discovery, as well as ongoing in-pit resource conversion drilling and near mine exploration to replace depleted ore reserves.
DEVELOPING
Norgold noted that its Bouly development project, located 5 km from Bissa, represented low-grade gold mineralisation favourable for heap-leach treatment.
A maiden ore reserve of 1.3-million ounces had been declared following the completion of a feasibility study (FS) in the first quarter of this year.
“The FS demonstrated excellent economic fundamentals for the project, according to which Bouly’s internal rate of return is 40% at a gold price of $1 250/oz,” Nordgold stated.
Bouly had an estimated ten-year life span with expected average production of about 120 000 oz/y.