Gold miner Resolute Mining has maintained its full year production outlook despite a disappointing September quarter.
Gold production in the three months to September reached 55 508 oz, compared with the 74 752 oz poured in the June quarter, while the group’s all-in sustaining costs (AISC) increased from A$1 303/oz to A$1 560/oz.
Resolute MD and CEO John Welborn said this week that despite the production and associated cost challenges experienced in the September quarter, the company is still expected to produce 300 000 oz for the 2019 financial year, and to reach an AISC of A$1 280/oz.
“Production and cost performance during the September quarter was, as expected, reduced due to the scheduled biennial roaster shutdown at Syama. Roaster maintenance was successfully completed over a seven-week period during the quarter, which resulted in significantly lower production from the Syama sulphide circuit than we would typically achieve,” Welborne said.
In addition, Syama also experienced significantly higher-than-average rainfall during the September quarter, limiting Resolute’s ability to process transitional ore through the sulphide circuit to supplement production during the roaster shutdown.
Syama produced 37 102 oz of gold during the September quarter, at an AISC of A$1 390/oz.
“Ravenswood is also achieving important milestones in its transformational journey with the completion during the September quarter of the essential tie-in of our new beneficiation plant. The work resulted in reduced milling time, lower production and higher than normal costs on a quarterly basis,” said Welborn.
The beneficiation plant is now operational and Resolute has reported that initial results were indicating that it was operating to expectations.
The beneficiation plant is part of the Ravenswood expansion project, which will see the project produce an average of 115 000 oz/y at an AISC of A$1 097/oz over a 14-year mine life.
Ravenswood delivered 18 406 oz of gold in the three months to September, with AISC reported at A$1 757/oz.
“The September quarter is broadly consistent with our overall operating plan from a production and cost perspective as we progress a three-year transformation journey at Syama and Ravenswood. We are building new long life, low cost mines at both operations and remain on track,” Welborn said.