JOHANNESBURG (miningweekly.com) – Trans-Siberian Gold (TSG) has recorded a solid start to the year, with an 11.8% year-on-year increase in gold production at its Asacha gold mine, in Russia, to 8 100 oz for the three months ended March 31.
“Having achieved record quarterly record production in the fourth quarter of 2017, we have made a solid start to 2018. While production is slightly lower than anticipated, we are pleased to have generated record quarterly revenue of about $15.6-million. A weaker ruble and higher gold prices have had positive impacts on our profitability,” TSG CEO Dmitry Khilov commented on Monday.
As a result of slowed mining progress during the quarter under review, owing to high underground water levels, as well as to ensure that processing capacity is fully used, higher grade stoping ore has been augmented by lower grade from stockpiles.
While the amount of ore processed was stable, the amount of gold produced has fallen quarter-on-quarter but is 11.8% higher on a comparative basis with the same period in 2017.
The average grade for the period was 6.1 g/t.
The high levels of water in the geological structure are being dealt with by investment in mobile pumping equipment, as well as the construction of a permanent pumping station 100 m underground.
It is anticipated that the second quarter production levels will reflect the continuation of high water levels while remedial activities take place.
Gold production in the second half of this year is expected to improve as the effects of the installation of additional pumping equipment is felt, TSG noted.
Accordingly, the company's total gold production guidance range of between 36 000 oz and 40 000 oz for the full year remains unchanged. The upper end of the range represents a year-on-year increase of about 9% in total gold production.