Photo by: Bloomberg
PERTH (miningweekly.com) – Metals miner Doray Minerals has lowered its expected gold production guidance for 2017, while increasing its copper production expectations.
The miner on Friday told shareholders that total gold production from its Deflector and Andy Well operations were expected to be between 100 000 oz and 110 000 oz, while copper production would be between 4 200 t and 4 600 t, for the full year ending June. Doray's earlier guidance, provided in September, estimated gold production of 105 000 oz to 120 000 oz and copper output of 3 000 t to 4 000 t.
Doray reported that ongoing reviews and optimisation of the current geological modelling at the Andy Well mine, in Western Australia, had reduced the number of forecast ounces that would be produced in the second half of the financial year.
The Andy Well mine is forecast to produce between 50 000 oz and 55 000 oz of gold for the full year, while the Deflector mine will have similar output, along with between 4 200 t and 4 600 t of copper.
Following a complete review at Andy Well, capital development would be optimised to reflect the production profile, and although lower ounces were expected for the remainder of this financial year, and into the next financial year, Doray MD Leigh Junk pointed out that the operation would produce more cash flow than continuing with a higher production and higher cost model.
“This places Andy Well in a far more favourable position going forward.”