8th May 2014 13:18
LONDON (Alliance News) - Avocet Mining PLC Thursday said its gold production fell in its first quarter compared to the previous quarter due to equipment replacements and lower grade mining during the period.
The west African gold mining and exploration company said its gold production fell 10% to 25,730 ounces in the three months ended March 31 from 25,730 ounces in the previous quarter as the company mined smaller pits with lower strip ratios as expected, in order to hold back higher grade material until new equipment is commissioned in August.
The company said its first quarter gold production was hit by production delays on the replacement of equipment at its SAG mill during March to address problems at the mill, announced in December, which prevented it from operating at full capacity.
Avocet said that at the end of March, some improvement was seen in mill vibration and throughput and cash costs during the quarter fell to USD1,178 per ounce from USD1,209 per ounce the previous quarter.
The company said its full-year gold production guidance for 2014 is between 105,000 and 115,000 ounces at a cash cost of between USD1,000 and USD1,100 per ounce.
It added that an ongoing review of its business continues, including assessment of the potential for underground mining of a high grade zone beneath its Inata North pit.
Avocet shares were down 5.7% to 8.49 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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