Avesoro records 6% q/q gold output increase in Q2

JOHANNESBURG (miningweekly.com) – TSX- and Aim-listed Avesoro Resources reported a 6% quarter-on-quarter increase in gold production at its New Liberty mine, in Liberia, to 15 824 oz during the quarter to June 30.

The West African gold producer achieved an average gold recovery of 88%, with low recovery levels in May, as a result of a high proportion of transitional ore from the Marvoe pit contained within the plant feed, offsetting the record process plant use and recovery of 97% in June.

“The process plant is now consistently operating above its designed throughput as a result of the modifications we have made since taking control of the company,” explained Avesoro Resources CEO Serhan Umurhan.

An additional new drill rig, currently on route to New Liberty, will further enhance the operation, increasing the drill and blast capacity, which had been a constraint for the mining operations during the quarter under review.

The total material movement during the June quarter decreased 12% to 3.77-million tons owing to a transition from free-dig oxide material into fresh rock within the Kinjor pit, with the latter requiring drilling and blasting prior to excavation.

Despite the reduction in ore mined throughout the period under review, mined ore grades averaged 2.64 g/t gold, an increase of 19% on the previous quarter.

Meanwhile, New Liberty has realised improved cost and operational performance following the management review and optimisation of operations at the mine.

“As a result, the company has commenced work on a revised openpit optimisation exercise and the production of a new life-of-mine schedule for New Liberty,” said Umurhan, adding that an update would be available during the third quarter of this year.

The company maintains its full-year production guidance of 90 000 oz to 100 000 oz.

“As previously disclosed, gold production for 2017 will be weighted towards the second half of the year, and we remain on course to meet our full-year production guidance . . . at a cash cost of $750/oz to $800/oz and all-in sustaining cost of $925/oz to $975/oz of gold produced,” Umurhan concluded.