Kingsrose reports lower output at Talang Santo mine
Friday, July 17 2015 - 03:02 AM WIB
ASX-listed Kingsrose Mining Ltd said that gold production at its Talang Santo mine in South Sumatra in the second quarter of this year reached 5,763 ounces, a 10 percent decline from 6,409 ounces in the same quarter of last year.
The company said in a quarterly report Thursday that silver output also fell to 10,433 ounces from 11,509 ounces in the corresponding quarter of last year.
The company said that 24,227 ounces of gold and 59,949 ounces of silver have been produced since mine permit approvals were granted in July of last year at an average All-in Sustaining Cost of US$1,076.
Kingsrose said that during the quarter the company sold 6,141 ounces of gold at an average gold price of A$1,5 13 and realized A$9.3M in revenue. The cash costs of production for the quarter were US$763/oz and all-in sustaining costs of production for the period were US$1,116/oz. The average all-in sustaining costs of production for the 2015 financial year was US$1076.
?The result for the year has been impacted primarily by the physical conditions encountered in the mine since the commencement of production in October 2014. Ground conditions (specific to the upper level of the mine and near to the surface) necessitated the introduction of additional ground support to ensure the safe extraction of ore. This resulted in a reduction in the mining rate from these production areas,? it said.
More recently, high water inflows on the 4 Level have also impacted access to high grade development areas further compounding this issue. In addition, ounces that were viewed as being recoverable as part of the planned vent works in the June 2015 quarter were deferred, it added.
Costs were impacted by the shortfall in production, and also as a result of the requirement for additional ground support in the upper levels of the mine and more recently additional operating costs associated with mine dewatering.
Editing by Reiner Simanjuntak