Avocet Mining PLC 2015 first quarter production update (8139N)
May 21 2015 - 2:00AM
UK Regulatory
TIDMAVM
RNS Number : 8139N
Avocet Mining PLC
21 May 2015
2015 first quarter production update
Avocet Mining PLC ("Avocet" or "the Company") today announces
its production and cash costs for the first quarter of 2015,
together with an update on other matters.
-- Total gold production for the quarter was 17,011 ounces at a
cash cost of US$1,113 per ounce, compared with 19,503 ounces
produced in the fourth quarter 2014 at a cash cost of US$1,052 per
ounce
-- Tri-K exploitation permit awarded - financing discussions ongoing
-- Souma programme of drilling and metallurgical test work
commenced on 1 April - initial results expected in June
Q1 production at Inata
Milling of ore resumed at Inata on 7 January 2015 following the
interruption in operations caused by the strike in December. Mining
recommenced in February, following the optimisation of revised
manning structures. A complement of approximately 600 staff based
on a three shift system has been configured, in contrast to the
previous arrangements of four shifts with a complement of nearly
800. Total mining of 1.8 million tonnes was only 7% lower than the
previous quarter.
The head grade of 2.50g/t reflected the working of some of the
highest grade ore within the North pit in order to boost cash flow,
following the loss of revenue during the disruption resulting from
the strike.
The overall recovery at 52% was impacted by a failure of an
agitator gearbox within the Carbon Blinding Circuit, which resulted
in that section of the plant operating at half capacity for over 3
weeks. A failure towards the end of March of the crucible within
the smelting apparatus also impacted gold production by delaying
one gold pour into the second quarter.
Cash costs were $1,113 per ounce, lower than the full year for
2014 of $1,186 per ounce.
2015 full year gold production at Inata is expected to be
similar to the 86,000 ounces achieved in 2014.
Souma
During the quarter, preparations were completed for a programme
of drilling and metallurgical test work at Souma which commenced in
April. A large number of artisanal miners were peacefully cleared
from the site and two drill rigs were mobilised. The objectives of
the programme are to confirm that Souma's metallurgy is oxide and
non-carbonaceous, and to generate a maiden ore reserve, either as a
standalone heap leach operation or as satellite feed for Inata. It
is expected that drilling and assay results will become available
during the second quarter.
Tri-K project
Having received the Exploitation Permit for the Tri-K project
from the government at the end of March, the focus has been on
re-engineering the project to reduce capital expenditure, and on
financing discussions for the construction of the new mine.
FOR FURTHER INFORMATION PLEASE CONTACT
Avocet Mining PLC Bell Pottinger J.P. Morgan Cazenove
Financial PR Consultants Corporate Broker
David Cather, CEO Daniel Thöle Michael Wentworth-Stanley
Mike Norris, FD
+44 203 709 2570 +44 (0)20 3772 2550 +44 20 7742 4000
NOTES TO EDITORS
Avocet Mining PLC ("Avocet" or the "Company") is an unhedged
gold mining and exploration company listed on the London Stock
Exchange (ticker: AVM.L) and the Oslo Børs (ticker: AVM.OL). The
Company's principal activities are gold mining and exploration in
West Africa.
In Burkina Faso the Company owns 90% of the Inata Gold Mine. The
Inata Gold Mine poured its first gold in December 2009 and produced
86,037 ounces of gold in 2014. Other assets in Burkina Faso include
a number of exploration permits surrounding the Inata Gold Mine in
the broader Bélahouro region. The most advanced of these projects
is Souma, some 20 kilometres from the Inata Gold Mine.
In Guinea, Avocet owns 100% of the Tri-K Project in the north
east of the country. Drilling to date has outlined a Mineral
Resource of 3.0 million ounces, and in October 2013 the Company
announced a maiden Ore Reserve on the oxide portion of the orebody,
which is suitable for heap leaching, of 0.5 million ounces. As an
alternative, the potential exists to exploit the entire 3.0 million
ounce Tri-K orebody via the CIL processing method. The Company
announced on 2 April 2015 that an exploitation permit had been
awarded for Tri-K.
Appendix 1
Inata Gold Mine quarterly production information 2014-15
2014 2015
Q1 Q2 Q3 Q4 2014 Q1
Ore mined (k tonnes) 621 818 591 499 2,529 393
Waste mined (k tonnes) 4,351 3,583 2,116 1,445 11,495 1,420
Total mined (k tonnes) 4,972 4,401 2,707 1,944 14,024 1,813
Ore processed (k tonnes) 483 537 554 329 1,903 437
Average head grade (g/t) 1.61 1.44 1.53 2.92 1.77 2.50
Process recovery rate 86% 88% 85% 61% 79% 52%
------ ------ ------ ------ ------ ------
Gold Produced (oz) 23,148 21,650 21,736 19,503 86,037 17,011
Cash costs (US$/oz) Q1 Q2 Q3 Q4 2014 Q1
Mining 464 508 395 306 422 262
Processing 402 478 461 431 442 540
Administration 223 242 239 232 234 236
Royalties 90 89 88 83 88 75
------ ------ ------ ------ ------ ------
1,179 1,317 1,183 1,052 1,186 1,113
This information is provided by RNS
The company news service from the London Stock Exchange
END
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