Photo by: Bloomberg
PERTH (miningweekly.com) – Nickel miner Western Areas has reported another strong quarter, despite a planned shutdown at its mill during February this year.
Production during the March quarter reached 6 702 t, compared with the 6 597 t delivered in the previous quarter. Year-to-date production has been recorded at 19 959 t, indicating that the full-year production target of between 24 500 t and 25 500 t remained on track.
The Flying Fox mine produced 72 144 t of ore during the quarter, to deliver 3 330 t of contained nickel, while the Spotted Quoll mine produced 70 590 t of ore, for 3 372 t of contained nickel.
Mill throughput for the quarter was reported at 145 933 t of ore, at an average grade of 4.7%, with nickel recovery of 90%, producing 6 180 t of contained nickel.
Western Areas noted that a planned mill reline conducted during the quarter reduced the milled tonnes at the Cosmic Boy concentrator, compared with the previous three quarters. This was a planned shutdown, and resulted in normalised production reducing by between 200 t and 250 t.
Despite the additional costs associated with the shutdown and the March quarter being the shortest of the year, Western Areas said on Wednesday that unit costs of production during the quarter reached A$2.32/lb, which was only slightly higher than the $2.23/lb reported in the previous quarter.
The year-to-date cash costs of A$2.36/lb were better than expected, and as a result, Western Areas was now expecting full-year cash costs to be at the lower end of the guidance, of between A$2.40/lb and A$2.50/lb.
At the end of the quarter, 95 399 t of ore, averaging a grade of 4.2% nickel for 4 039 t of nickel was stockpiled at the mine ore pads and run-of-mine pad. This represented about two months’ worth of mill feed, and enabled Western Areas to select an optimal mill feed blend.