Avesoro on track to achieve revised full-year guidance

10th July 2019 By: Tasneem Bulbulia - Creamer Media Reporter

Dual-listed West African gold producer Avesoro Resources completed the operational aspects of the transition to contractor openpit mining at both the Youga and New Liberty mines, in Burkina Faso, during the second quarter, positioning it to achieve its revised production guidance of 180 000 oz to 200 000 oz of gold for the full-year.

“With the operational aspects of the transition to contractor mining at both Youga and New Liberty now in place, I am confident that the challenges experienced during the second quarter have been overcome and that total material movement and gold production will increase in the second half of the year,” Avesoro CEO Serhan Umurhan said in a preliminary production results announcement on Wednesday.

Avesoro recorded consolidated gold production of 34 338 oz for the second quarter ended June 30, taking gold production for the first half of the year to 79 435 oz.

New Liberty produced 18 822 oz for the quarter, a 27% decrease on first-quarter production.

Youga’s gold production was 19% lower quarter-on-quarter, at 15 516 oz.

Total material movement amounted to 12.3-million tonnes for the period, a 7% quarter-on-quarter decrease.

At Youga, the temporary production stoppage caused by the transition to contractor mining in June, and the ongoing lower-than-expected grade from the Gassore pit resulted in mill feed grade deteriorating by 23% quarter-on-quarter to 1.5 g/t gold.

To remedy the grade issue, the company engaged technical experts CSA Global to undertake an operational review of the mining and grade control practices at Youga.

In response to CSA’s recommendations, Avesoro has employed additional technical staff to manage mining production and grade control at Youga.

Umurhan expressed his confidence that the company would see a material improvement in the situation as a result.

At New Liberty, second-quarter gold production was temporarily adversely impacted on by the transition to contractor mining in April.

“I am pleased to report that production performance during May and June returned to our budgeted levels and we are now well prepared for the onset of the wet season during the third quarter,” said Umurhan.