G-Resources reports higher Q1 gold, silver output from Martabe mine
Wednesday, April 23 2014 - 03:18 AM WIB
Hong Kong-listed mining firm G-Resources Group Limited announced Tuesday that gold output at its Martabe gold and silver mine in North Sumatra reached 64,802 ounces in the first quarter of this year, up from 63,633 ounces in the same period of last year.
The company said in a statement that the first quarter output was equivalent to an annualized production of 259,000 ounces of gold, exceeding current guidance of 230,000 to 250,000 ounces.
Meanwhile, the company said that silver output during the first three months of this year reached 515,617 ounces, more than double from 244,383 ounces in the same quarter of last year.
This is equivalent to an annualized production of over 2 million ounces, meeting current guidance, it said.
The statement said gold and silver revenue received from sales was US$89 million
G-Resources said that through the quarter, the mine and process plant continued to operate well with gold production on plan and costs continuing to be lowered.
Site operating costs for the quarter were again maintained at low levels as management continued to seek operating improvements across all activities., the company said. Cash costs to gold under the North American Gold Institute Standard (NAGIS) were $474/ounce poured. AISC under the World Gold Council (?WGC?) guidelines were $682/ounce sold for the quarter, a $75/ounce reduction on the previous quarter
One area of challenge that remains is the provision of grid power from PLN, the state owned Indonesian power provider. Negotiations with PLN continue to reaffirm commitments to deliver power once the current shortage of supply is rectified ? understood to be in the second half of 2014, the statement ended.
The Martabe mine has an estimated gold resources of 8.05 million ounces of gold, and 77 million ounces of silver. G-Resources Group Ltd owns 95 percent of the project, while the remaining 5 percent is held by PT Artha Nugraha Agung.
Editing by Reiner Simanjuntak