PERTH (miningweekly.com) – Gold miner Gascoyne Resources has reported its third consecutive quarter of more than 20 000 oz of production.
During the three months to December, Gascoyne produced 20 381 oz of gold, up from the 20 314 oz produced in the previous quarter, bringing half-year production to 40 695 oz.
“The December quarter results are very pleasing, in particular ending the quarter in a net cash position. The company has achieved what we said we would do in a very short period of time since being reinstated to the ASX in October 2020,” said MD and CEO Richard Hay.
“For the quarter we produced 20 381 oz which has us on track to achieve the upper end of guidance of 80 000 oz and within our all-in sustaining cost (AISC) per ounce range of A$1 200/oz to A$1 300/oz. With 53 722 oz hedged at an average price of A$2 611/oz, Gascoyne is well placed to continue generating free cash flow.
During the quarter under review, 21 341 oz was sold at an average realised price of A$2 605/oz, with AISC for the quarter reaching A$1 100/oz.
Hay said that in addition to the continued strong gold production performance, the company also successfully fired up both exploration and resource drilling across a range of targets within 15 km of its Dalgaranga plant, which continues to be one of the most efficient in Western Australia.
“The company’s total mineral resource now stands at 1.3-million ounces following the release of the updated estimate of 510 100 oz at the Glenburgh project.”
For the full 2021, Gascoyne expects to produce at the upper end of between 70 000 oz and 80 000 oz, with production expected to be relatively even between the first and second halves of the financial year.