PERTH (miningweekly.com) – Gold miner Kingsgate Consolidated on Thursday lowered the full-year production expectations at its Chatree gold mine, in Thailand, citing permitting delays.
Its production guidance was lowered to between 95 000 oz and 105 000 oz, compared with a previous forecast of between 125 000 oz and 135 000 oz.
The company said that permitting delays had constrained access to various orebodies and placed undue pressure on the ageing mine fleet, while also impacting on the mine plan.
Mining activities at Chatree were suspended last year, and only resumed in March 2015, after Thai authorities lifted a temporary suspension order, which was issued after random urine and blood tests of villagers living near the mine revealed above-standard arsenic and manganese levels.
A subsequent environmental report had confirmed that the Chatree operation was not the source or cause of the elevated arsenic and manganese levels.
Kingsgate stated that despite the mine being active since 2001, the operation was now subject to bureaucratic delay and an investigative burden based on false accusations that were significantly constraining the operation, holding back investment, and creating operating inefficiencies.
“The business has overcome hurdles in the past, and we are confident that we will continue to do so in the future,” CEO Greg Foulis said.
He noted that the deferred ounces from the 2016 financial year would be mined in 2017, and that the company would generate positive cash flow from Chatree in 2016.
Edited by: Creamer Media Reporter
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