Archipelago met 2012 guidance of gold output

By Romel S. Gurky

LSX-listed Archipelago Resources Plc recently stated it met initial guidance output of 139,012 Au Eq Oz of gold at the cash cost of $635 per Au Oz in its first full year production. Over the full year, the average head grade for Au Eq oz was 2.79 g/t.

"Throughout 2012, Archipelago continued to mine from the main Toka pit. Ore was also accessed from the higher grade satellite deposits, initially at Araren and Pajajaran; with mining commencing at Kopra towards the end of the year. By accessing these high grade deposits with ore near the surface, Archipelago achieved a decline in the strip ratio as the year progressed, reporting a full year strip ratio of 5.64:1, the company said in a statement at the exchange on Monday.

The company said that drier seasonal conditions towards the end of 2012, coupled with the sourcing of higher grade ore, skewed its production profile towards greater output rates in the second half of the year, a trend expected to repeat in future years, given the historically high levels of rainfall during the January to March wet season at Toka Tindung.

"In 2012, our processing plant operated in line with nameplate capacity of 1.7mtpa. Recovery rates also remained relatively constant throughout the year at 90.3%," it said.

Archipelago anticipates production of 140,000 to 155,000 Au Eq oz in 2013, as it continues to mine at Toka, in addition to the high grade deposits of Kopra and Pajajaran; with ore also planned to be sourced from a newly opened pit at the Blambangan deposit later in the year.

2013 cash cost guidance is $620 to $680 per Au oz.

Editing by Er Audy Zandri