PERTH (miningweekly.com) – Africa-focused gold miner Resolute Mining has reported a 3% increase in gold production for the quarter ended December, compared with the September quarter.

Gold production reached 89 888 oz during the quarter ended December, bringing full year production to 398 136 oz, compared with the 384 731 oz delivered in the previous 12 months.

Gold sales for the quarter reached 91 607 oz, up from the 90 900 oz sold in the previous quarter, with the average realised price also increasing from $1 694/oz to $1 719/oz in the same period.

All-in sustaining costs (AISC) for the quarter were down by 22%, from $1 284/oz to $1 002/oz.

Resolute told shareholders that the increased production during the quarter was driven by a strong performance from the Mako gold mine, in Senegal, and the improved performance of the Syama sulphide operation, in Mali, where production increased by 15% on the previous quarter, despite a number of local and national strike calls during the quarter.

Syama oxide production was affected by the late arrival of mining equipment to the Cashew openpit, which delivered access to higher grade ore, along with material handling issues associated with viscous, low density ore.

Looking at 2021, Resolute has set a gold pour target of between 350 000 oz and 375 000 oz, at an AISC of between $1 200/oz and $1 275/oz, inclusive of corporate overheads. The company said that the focus for 2021 would be on operational consistency and cash generation.

During the quarter under review, Resolute announced the sale of its Bibiani gold mine, in Ghana, for a total cash consideration of $105-million, to a wholly owned subsidiary of Chifeng. 

The project was acquired by Resolute in 2004, and was placed on care and maintenance shortly after, to allow exploration activities to enable the development of an economically viable, long-term, large scale operation.

A 2018 feasibility study into a Bibiani restart estimated that the project could produce some 100 000 oz/y over a ten-year mine life, at a total capital cost of around $115-million.

The project is currently estimated to host some 21.7-million tonnes, grading 3.6 g/t gold for 2.5-million ounces of contained gold.