PERTH (miningweekly.com) - ASX-listed Reed Resources has poured its first gold at the Meekatharra gold project, in Western Australia.

The miner said in a statement that the initial Bluebird feed to the three-million-ton-a-year gold processing plant was predominantly comprised of stockpiled, low-grade ore, which established Bluebird’s gold-in-circuit inventory, and allowed gold stripping and production to start.

MD Luke Tonkin said that, with the first gold pour, the company had now fulfilled its ambition of gold production, on schedule and within budget.

“Bluebird’s first gold pour marks Reed’s successful transition to producer,” he added.

“As is the case with all mining projects and commissioning phases, there are challenges that need to be addressed to ensure the health, wellbeing and safety of all those involved is managed effectively and that expenditure guidance and schedules are met.”

Tonkin noted that the plant operating parameters were established during the wet commissioning phase, and gold production was expected to increase through the March quarter.

The Bluebird gravity circuit had also been commissioned, which would allow run-of-mine (RoM) ore from the Bluebird openpit mine to be added to the low-grade stockpiled blend, increasing the feed grade and gold production over the coming months.

Meanwhile, mining of the Bluebird openpit had progressed ahead of schedule, while ore presentation to the RoM stockpile was also ahead of schedule, allowing the site to introduce higher-grade ore feed to the plant.

Gold production at Meekatharra would proceed over three phases, with the first phase expected to start immediately once equity funding arrangements had been settled.

The Phase 1 start-up would be based on a low-risk openpit mine operation for the first two years, at a production rate of 100 000 oz/y.

Stage 2 of the development, which was projected to start in early 2014, would include production from eight existing and identified reserves, and would increase production to some 160 000 oz/y.