PERTH (miningweekly.com) – Africa-focused gold miner Resolute Mining has reported cost increases and decreased production in the June quarter, compared with the previous quarter.
During the three months to June Resolute poured 84 372 oz of gold, down from the 92 259 oz poured in the first quarter, with all-in sustaining costs (AISC) over the same period increasing by 2% to $1 489/oz on the back of the reduced gold production.
In Mali, the Syama sulphide operation produced 38 589 oz of gold, down from the 41 142 oz produced in the previous quarter, as ore volumes decreased by 17% owing to ongoing underground development.
At the Syama oxide operation, production in the same period decreased from 17 513 oz to 15 544 oz on the back of a decrease in recovery, driven by a high organic carbon content in the mill feed. Resolute told shareholders that the mining of this ore was immediately curtailed.
In Senegal, the Mako operation produced 30 239 oz of gold, down from the 33 604 oz produced in the March quarter, with mining operations in the June quarter focused on waste capitalisation to expose higher-grade ore for the coming quarter.
“We ended the quarter with 84 372 oz of gold poured and an AISC of $1 489/oz which was in line with our expectations. Despite the reduction in gold production this quarter, our AISC per ounce poured increased only 2% as our promised focus on sustainably reducing costs across the group started to pick up momentum,” said Resolute CEO and MD Terry Holohan.
“It is pleasing to review our key statistics of tonnes mined and processed, ore grades (despite the mining of a medium grade section of Mako ore) and net debt, from the first half of 2023 in comparison to the first half of 2022 numbers. This demonstrates Resolute’s progress in such a short space of time, ensuring the company is well placed to grow even further.
“Furthermore, the Syama Phase I Expansion study has also continued to progress as expected. The expansion of the Syama plant, based upon the initial maiden ore reserve from Syama North, is proving to require a low capital outlay while significantly increasing production and shareholder value over the life-of-mine,” Holohan added.
He noted that exploration continued to focus on Syama North and unlocking future potential for the flagship asset.
“Lastly, our focus remains in the second half of 2023 on reducing costs sustainably across the Resolute Group, while increasing production, specifically at Syama, with many initiatives ongoing.”