Doray meets production expectations

JOHANNESBURG (miningweekly.com) – High-grade gold producer Doray Minerals delivered 16 812 oz from its Andy Well mine, near Meekatharra in Western Australia, in the June quarter, bringing its full-year production to 84 135 oz.

This was in line with, and at the top end of, the company’s full-year guidance of 78 000 oz to 85 000 oz.

Doray MD Allan Kelly said that Andy Well had once again delivered an “excellent” operational performance with the mine having now delivered above its bankable feasibility study (BFS) expectations for a third consecutive year.

“Knowing that openpit mining would cease in the second half of the year and that additional capital development spend would be required to reach new deeper zones of the Wilber and Judy lodes, we are pleased to have been able to deliver this result,” he added.

Quarterly cash operating costs were A$830/oz, resulting in full-year costs of A$665/oz, which was with in the company’s guidance of A$600/oz to A$700/oz.

Similarly, all-in sustaining costs (AISC) for the June quarter were A$1 548/oz, resulting in full year AISC of A$1 229/oz. The higher an ounce costs seen in the June quarter were within Doray’s mine plan and internal budget, reflecting lower head grades mined over the quarter, as mining of development drives were accelerated to access the new zones.

“With our current mine plan scheduled to see Andy Well production revert back towards BFS levels, our exploration efforts over the course of the last year have been important. Continued encouraging mineralisation at Wilber Deeps and our maiden inferred resource at Gnaweeda are shaping up to give us further optionality at Andy Well,” Kelly highlighted.