PERTH (miningweekly.com) – Gold-miner Dominion Mining on Tuesday reported that production for the quarter ended September was a “substantial improvement” on each of the previous quarters in the 2010 financial year.
For the three months ended September, Dominion produced 25 902 oz of gold from processing 161 425 t of ore from its Challenger operations, in South Australia. This was compared with the 22 373 oz produced in the June quarter, and the 17 605 oz produced in the previous corresponding period.
Production for the December quarter was expected to be similar to the September quarter figures, resulting in a forecasted output of around 50 000 oz of gold for the six months.
The development and stoping of both the M1 and M2 shoots at the Challenger mine continued during the period under review, and ore was also mined from the M3 shoot.
The focus of the development and underground capital infrastructure expenditure was to enable access to higher-grade stopes in the second half of the current financial year, the gold miner said.
Dominion noted that the availability of the processing plant during the quarter was marginally lower than the June quarter, owing to a full reline of the original ball mine completed during September.
The mill throughput rate averaged 78,2 t/h and of the total tons treated, 705 were from the M2 body, while 14% was from the M1 body, with the balance from the M3 and lower-grade stockpiles.
Meanwhile, Dominion chairperson Peter Joseph has once again called on shareholders to accept the takeover offer by rival miner Kingsgate.
Kingsgate made a A$376-million takeover offer for Dominion, offering 0,31 of its own shares for every Dominion share held.
Jospeh told shareholders on Tuesday that the combined company, with an implied market value of A$1,6-billion, would provide Dominion shareholders with an opportunity to share the combined entity’s increased size and market presence.
The combination would also reduce operational risk through the exposure to Kingsgate’s Chatree gold mine, in Thailand, and would give shareholders exposure to a company with a strong production outlook, with the potential to produce a combined 300 000 oz/y.
“Dominion’s board of directors has unanimously recommended this transaction to shareholders in the absence of a superior proposal and subject to the independent expert opining that the scheme is in the best interest of Dominion shareholders,” said Joseph.
At the completion of the transaction, current Kingsgate shareholders would own about 76% of the combined company, with Dominion shareholders taking up the remaining 24%.
The transaction was subject to a number of conditions, including regulatory and shareholder approval.
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