JOHANNESBURG (miningweekly.com) – TSX-listed Nevsun Resources on Wednesday reported strong first-quarter production results with 82 000 oz of gold produced during the period ended March 31.
The company said gold output from its Bisha mine, in Eritrea, was above expectations on the back of a drawdown of gold-in-circuit in the processing plant, in preparation for a mill reline and higher-than-anticipated grades in portions of the high-grade ore stockpile.
Nevsun stood by its full-year production guidance of 190 000 oz to 210 000 oz.
“The mine performed well in the quarter, producing expected total tonnage and gold head grade. The costs associated with the removal of copper phase prestrip are deferred for accounting purposes,” the company said in a statement.
The reduction in mined head grade for the first quarter year-on-year was according to plan and fitted with the company's guidance on 2012 production.
The firstquarter plant tonnage was lower than the same period in the prior year owing to changing ore characteristics and lower plant availability.
The reduced milling was offset by the higher-than-budgeted gold grades for the quarter. Gold recoveries during the period decreased when compared with the same period in 2011, owing to the changing ore characteristics. The lower recovery rate was expected to continue throughout the year.
The company expected to release its 2011 full-year financial results during mid-May.