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Doray warns of impairment at Andy Well

Doray warns of impairment at Andy Well

Photo by Bloomberg

18th August 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed gold miner Doray Minerals on Monday warned shareholders of an asset impairment charge of between A$40-million and A$50-million for the year ended June.

The anticipated impairment charge was primarily relating to the decrease in the Australian dollar gold price, compared with the A$1 600/oz price used in the bankable feasibility study (BFS) for the Andy Well mine, in Western Australia.

Doray said on Monday that the impairment charge was also based on the initial mine plan for the Andy Well project, as per the BFS. Since starting production, Doray has discovered two additional high-grade deposits at the mine, and announced a significant extension to the depth extent of the Wilber lode deposit, which was currently being mined.

As a result, gold production from the Andy Well mine would be extended well beyond the initial mine life, with the incorporation of the new discoveries into the mine plan.

Doray would announce its results for the 2014 financial year next month.

Edited by Creamer Media Reporter

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