6th Feb 2015 08:06
LONDON (Alliance News) - Avocet Mining PLC Friday said it missed its production target for 2014 because a strike at the Inata mine hampered operations for over a month, and said production during 2015 will remain fairly flat.
Production from the company's producing asset, the Inata mine in Burkino Faso, fell quarter on quarter in the three months to December 31, to 19,503 ounces of gold from 21,736 ounces. The decrease was due to an illegal strike that started on December 4 and ended on December 12.
The company said it took several weeks to get operations back to full capacity following the strike, with the plant circuit only being restarted on January 6, which is when stockpiled material began to be processed again. Mining at the project has still not recommenced, but the company said it is confident mining will restart during February.
Avocet's cash cost fell during the period. In the fourth quarter, cash costs averaged USD1,052 per ounce compared to USD1,183 per ounce in the third quarter. The lower cash costs were the result of a reduction in waste mining and cost reduction initiatives at the mine.
As a result of the strike, gold production for the year missed guidance. Avocet produced 86,037 ounces of gold in 2014, significantly off the company's target of 95,000 ounces for the year.
Avocet is expecting gold production in 2015 to remain fairly flat from 2014 and said the Inata mine has around two to three years left of operations. However, the company said the nearby Souma play should supply an additional one to two years life-of-mine with its 800,000 ounce resource.
Avocet is currently planning drilling and metallurgical test work on Souma "in the coming months," and said it may be able to host its own heap leach operation as well.
"As this work and Inata operations progress over the coming months, bringing clarity on factors such as costs, recoveries and gold prices, work will be carried out on Inata's life of mine plan and updates will be provided accordingly," said Avocet.
By Joshua Warner; [email protected]; @JoshAlliance
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