Martabe to reach full design capacity in Q2

By Puspita Maylana Devi

Hong Kong-listed G-Resources announced that full-design capacity at its Martabe gold and silver mine project is anticipated to be achieved in the second quarter of 2013.

While the first quarter is still a ramp up period for the Martabe mine, full design capacity is anticipated to be achieved in the second quarter, the company said in its latest operation update report.

And with good head grades anticipated for the year, overall production is forecast to be over 90 percent of nameplate design at approximately 4,300,000 tons of ore milled, 250,000 ounces gold produced and 2,200,000 ounces silver produced, it said.

The Martabe mine is located on the western side in North Sumatra, in the Batangtoru sub-district. Martabe, with a resource base of 8.05 million ounces of gold and 77 million ounces of silver, is G-Resources Group's core starter asset.

Exploration expenditures are expected to be approximately $17 million, whilst capital expenditure is estimated to be approximately $80 million which includes further land acquisition costs, feasibility studies for various expansion project related activities, lifts for the tailings dam as well as some sustaining capital.

This capital of $80 million for 2013 is untypical and on an ongoing basis sustaining capital is more likely to average $40 million per annum, mainly for ongoing TSF wall lifts, excluding any expenditure on the oxide plant expansion or an additional plant to treat the sulphide ores.

Total gold ounces produced in 2012 exceeded the prior guidance of 43,000 ounces by 4,858 ounces. The Martabe Mine produced first gold on 24 July 2012, and the remainder of that quarter (Q3) was mainly focused on commissioning activities. In Q3, 13,273 ounces of gold were produced.

Editing by Dadan Wijaksana