Saracen production declines as Whirling Dervish halts

PERTH (miningweekly.com) – Gold junior Saracen Mineral Holdings has reported a slight decline in production from its Carosue Dam operation, in Western Australia, following the completion of the Whirling Dervish openpit mine.

For the three months to September 30, Saracen produced 38 140 oz of gold, which was down from the 46 563 oz produced in the previous quarter.

Mill throughput and recoveries both increased relative to the June quarter, owing to a higher portion of mill feed being delivered from the Karari underground mine; however, mill grade decreased after the Whirling Dervish mine closed.

Ore stockpiles contributed 75% of the mill feed during the quarter under review, with the Red October and Karari mines contributing 16% and 9% respectively.

All-in cash costs for the quarter also rose from the A$871/oz reported in the June quarter to A$1 025/oz.

Meanwhile, gold sales for the quarter reached 39 391 oz, generating an average sales price of A$1 593/oz for total revenue of A$62.8-million. Of these sales, 18 679 oz was delivered into hedging.

Saracen also progressed the development of its Thunderbox operation during the quarter, which was expected to add some 20 000 oz of gold to the company’s 2016 production figures.

The A$65-million Stage 1 Thunderbox openpit operation would deliver 597 000 oz of gold, over an initial mine life of four-and-a-half years and, along with organic growth at Carosue Dam, would effectively double Saracen’s gold output to about 300 000 oz/y.