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Red 5 reports strong production growth

21st July 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – The Siana gold mine, in the Philippines, nearly doubled its production in the June quarter, to 18 047 oz.

This compares with the March quarter production of  9 448 oz, while gold sales increased from 10 365 oz in the March quarter to 19 946 oz in the period under review.

As a result of the increased production volumes and absence of extended maintenance periods for the processing plant, C1 cash operating costs for the quarter fell to A$663/oz, a 24% reduction from A$870/oz in the March quarter.

The all-in sustaining cost (AISC) for the quarter was A$1 168/oz sold, compared with A$1 799/oz in the previous quarter.

A total of 59 663 oz was recovered and 60 354 oz sold for the current financial year. The AISC for the year was A$1 456/oz sold and the average gold price received was A$1 612/oz and was forecast to continue to reduce from the September quarter, as a result of a significant reduction in the waste-to-ore ratio in the openpit.

Meanwhile, the company reported that preparations were under way for a new exploration drilling programme, planned for the second half of the year, targeting the area of the south of the Siana open pit, where previous soil sampling identified large copper/gold anomalies in the Alegria-Madja area.

SIANA UNDERGROUND
Based on the positive outcomes of an updated feasibility study, Red 5 approved the Siana underground mine for development in the quarter. The project is scheduled to start in the second half of this year.

The feasibility study has identified a maiden Joint Ore Reserves Committee-compliant reserve of 3.01-million tons at 4.1 g/t gold for 369 000 oz of contained gold.

The feasibility study also considered a long-term mine plan based on the whole underground resource, which includes average yearly forecast recovered gold production of  60 000 oz/y over an eight-year mine life and life-of-mine AISC of $930/oz to $980/oz.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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