21st May 2015 08:09
LONDON (Alliance News) - Avocet Mining PLC Thursday said full-year production is set to be around a similar level to 2014 despite production falling and costs rising in the first quarter of the year.
Total gold production, which comes from the Inata mine in Burkina Faso, was 17,011 ounces of gold in the first quarter of 2015, which is down quarter on quarter from 19,503 ounces. Cash costs also rose in the quarter to USD1,113 per ounce from USD1,052 per ounce.
Production was hampered in the quarter as mining only recommenced at the mine in February following the interruption in operations caused by a strike in December. Total mining of ore, which totalled 1.8 million tonnes, was only 7% lower than the previous quarter.
Despite cash costs rising quarter on quarter, the company said it was still lower than the average cash cost for the whole of 2014, which averaged USD1,186 per ounce.
Full year production in 2015 is set to be "similar" to the 86,000 ounces of gold produced from Inata in 2014.
During the quarter, preparations were completed for a programme of drilling and metallurgical test work at the Souma mine in Guinea, which commenced in April. The objectives of the programme are to confirm that Souma's metallurgy is oxide and non-carbonaceous, and to generate a maiden ore reserve. It is expected that drilling and assay results will become available during the second quarter.
The company continues to try to re-engineer the Tri-K project, also in Guinea, to reduce capital expenditure after receiving the exploitation permit from the government. Financing discussions for the new mine also are ongoing.
Avocet shares were up 0.4% to 4.60 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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