TIDMVGM
RNS Number : 5777J
Vatukoula Gold Mines PLC
13 June 2014
13 June 2014
Vatukoula Gold Mines plc
("Vatukoula" or "the Company")
Operational Update for the three months ended 31(st) May
2013
Vatukoula Gold Mines Plc (AIM:VGM), the AIM listed gold
producer, is pleased to announce its operational results from its
100% owned Vatukoula Gold Mine in Fiji for the third quarter ended
31(st) May 2013.
3 months 3 months 3 months 3 months 3 months
ended ended ended ended ended
May 2014 Feb 2014 Nov 2013 Aug 2013 May 2013
Operating Results (Q3) (Q2) (Q1) (Q4) (Q3)
----------------------------------------- ---------- ---------- ---------- ---------- ----------
Underground Mining
Total underground tonnes mined
(ore, waste & capital) 85,893 106,437 104,805 96,701 94,793
Operating development (metres) 2,746 2,876 2,822 3,199 3,666
Strike drive development (metres) 448 449 379 395 405
Capital development (metres) 1,040 1,535 1,327 1,131 976
Total development (metres) 4,234 4,860 4,528 4,725 5,047
Sulphide Plant
Sulphide ore delivered (tonnes) 53,079 54,027 62,073 54,637 59,456
Sulphide head grade (grams/tonne) 4.85 5.05 5.30 5.85 4.53
Oxide Plant
Oxide ore delivered (tonnes) 24,921 10,993 47,593 57,076 40,424
Oxide head grade (grams/tonne) 2.50 2.05 2.06 2.15 2.36
Total (sulphide + oxide)
Ore processed (tonnes) 76,950 66,895 107,115 111,936 100,182
Average ore head grade (grams/tonne) 4.06 4.54 3.97 3.96 3.48
Total recovery 80.89% 80.76% 79.37% 79.44% 79.76%
Gold produced (ounces) 8,139 7,622 11,090 11,442 9,005
Gold shipped (ounces) 7,794 7,700 11,415 11,219 8,704
----------------------------------------- ---------- ---------- ---------- ---------- ----------
Cash Costs
----------------------------------------- ---------- ---------- ---------- ---------- ----------
Cash cost per ounce shipped (US$) 1,938 1,618 1,360 1,393 1,812
Cash cost per tonne mined and milled
(US$/tonne) 196 186 145 140 157
Average realised gold price (US$/ounce) 1,271 1,239 1,285 1,317 1,474
----------------------------------------- ---------- ---------- ---------- ---------- ----------
Yingbin Ian He, Non-Executive Chairman of Vatukoula Gold Mines,
commented:
"As previously advised this quarter's production remained at a
restricted rate, as we continue work to secure long - term
financing. We have maintained our policy of carrying out only
essential development required for current production requirements
and limited long-term development when possible.
We have begun discussions with some strategic investors to fund
the additional US$ 20 million as highlighted in the general meeting
notice."
Underground Production and Development
Mining operations at Vatukoula continue to be limited by capital
and cash flow constraints. We have prioritised our mining
operations on production stoping followed by essential development.
The program to open new areas has been maintained, but on a limited
basis. Ore production can be maintained in the short term, but
development to open new areas must be initiated before our long
term production targets can be achieved.
Total tonnes of ore and waste mined for the third quarter ended
May 2013 decreased to 85,893 tonnes compared to 94,793 tonnes in
the same period last year. The lower tonnages were primarily driven
by decreases in operating and capital development metres.
The ore delivered from underground for the third quarter was 76,
950 tonnes compared to 100,182 tonnes in the same period last year.
This reduction was due to lower stope availability, lower average
stope heights and lower strike drive development which is typically
delivered as ore.
The average underground grade for the period was 4.85 grams per
tonne, which was higher than the same period last year (4.53 grams
per tonne). The year on year variance is a result of some higher
grades (6.27 grams per tonne) delivered from the Philip Shaft.
The cash costs have increased from US$ 1,812 per ounce of gold
and US$ 157 per tonne of ore in the 3 months period ending May 2013
to US$ 1,938 per ounce and US$ 196 per tonne for the 3 months ended
May 2014. These increases in costs are primarily driven by lower
tonnages and lower grades processed.
Surface Production
Production for the 3 months ended May 2014 from surface oxides
and sulphide waste piles was 24,921 tonnes at a grade of 2.50 grams
per tonne (40,424 tonne at 2.36 grams per tonne for the same period
last year). Ore was delivered from both sulphide waste dumps and
surface oxide production. Sulphide waste is being processed through
the sulphide circuit.
Vatukoula Treatment Plant ("VTP")
During the 3 months ended May 2014, the VTP processed 76,950
tonnes compared with 100,182 for the same period last year. The
decrease was driven by lower underground and surface ore delivered
to the mill. The average grade increased to 4.06 grams per tonne
from 3.48 grams per tonne delivered over the same period. This was
driven by higher grade ore from underground mining operations and
lower tonnages mined from surface.
Gold recovery was 80.89% for the 3 months ended May 2013. This
was higher than the comparable period last year (79.76 %). The
increase in recovery has been driven by the higher grades delivered
to the VTP.
Enquiries:
Vatukoula Gold Mines plc. Pelham Bell Pottinger
+ 44 (0)20 7440 + 44 (0)20 7861
Ian Ying Bin He 0643 Daniel Thöle 3232
W.H. Ireland Limited
+ 44 (0)20 7220
James Joyce 1666
James Bavister
This information is provided by RNS
The company news service from the London Stock Exchange
END
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