Fri Jan 25 2013
GOLD production on Lihir Island
by Newcrest Mining for December 2012 quarter was 14 percent higher than the
September quarter in the same year. The high production was associated with a
37 per cent increase in mill throughput, partially offset by lower grade and
recoveries. This was reported in the company’s announcement for the December
2012 quarter report released yesterday.
Lihir’s performance in that
quarter was 147,126 ounces of gold at a cash cost of $A649 per ounce. The September 2012 quarter performance was
recorded at 129,311 ounces of gold at a cash cost of $A632 per ounce. It was
reported that the previous quarter was primarily impacted by a production
interruption due to an electrical fault in the main oxygen plant.
Lower feed grade in the December
quarter resulted from a planned transition from Stage 11 of the Lienetz pit
into ore from Stage 12 of the Minifie pit. Total material movement was 20 percent higher in the December
quarter, comprising both increased ore mined and additional waste stripping in
Stage 12 and Stage 9 of the Minifie pit to access future ore sources.
Site costs were higher than the
previous quarter as both mining and milling rates increased. Meanwhile,
production at Hidden Valley in Morobe Province for that quarter saw lower gold
production compared to the last September production. The Hidden Valley Joint
Venture is operated between subsidiaries of Newcrest (50 per cent) and Harmony
Gold Mining Limited of South Africa (50 per cent).
Hidden Valley’s December 2012
quarter performance was 20,649 ounces of gold and 235,312 ounces of silver at a
cash cost of $A1584 per ounce of gold. This
compared with the September 2012 quarter performance of 22,137 ounces of gold
and 223,936 ounces of silver at a cash cost of $A1355 per ounce of gold.
Material movements and gold
grades were marginally higher in the December quarter. Lower gold production
resulted from reduced mill throughput due to lower plant availability during
the quarter.Silver production increased as a result of higher grades and
recovery rates. The crusher installation at the start of the overland conveyor
is progressing and will be commissioned in April, approximately two months
later than forecast.
After the crusher is
commissioned, operating costs are expected to fall with the removal of higher
cost trucking of ore to the mill. Higher unit cash costs in that quarter
resulted from lower gold production and increased site costs. The increase in
cost were due to higher energy costs associated with increased reliance on site
power generation and higher levels of training and community expenditure.
The report said Hidden Valley’s production and cost performance continue to be very disappointing. Significant effort is being applied to improve productivity and reduce costs. With the later commissioning of the crusher, production is expected to come in below guidance for the full financial year at around 90,000 ounces. Newcrest said it will carefully review the performance of the asset after the crusher is commissioned later in April.
Source: postcourier.com.pg