11th Aug 2005 14:13
GMA Resources PLC11 August 2005 GMA RESOURCES Plc NEWS RELEASE FOR IMMEDIATE RELEASE London, 11 August 2005 QUARTERLY REPORT SECOND QUARTER ENDED 30 JUNE 2005 GMA Resources Plc, the gold mining company, announces its quarterly reportoutlining operating and development activities for the second quarter ended 30June 2005. Highlights - Operations • Gold production was 5,783 ounces for the quarter; • Mining operations continued at Amesmessa; • Procurement of second hand excavator to assist with cost reductions; • Establishment of significant mined ore stockpile ahead of processing plant. - Development • High grade intercepts achieved from last batch of drill core samples; • Database validation work on Tirek Veins II/III completed; • Resource modeling commenced on Tirek Veins XIV/XV; • Tirek airstrip commissioned; • Feasibility Study scheduled to be completed September 2005. 1.0 Summary GMA Resources Plc, the gold mining company, owns a 52% controlling interest inthe Tirek Gold mine and exploration project in Algeria. The company's shares arelisted on the AIM market of the London Stock Exchange under the code GMA. The Board's strategy is to complete a development plan for the substantial Tirekand Amesmessa gold deposits with a view to significantly expanding the existinggold mining operation. A major exploration drilling programme commenced inOctober 2003 and 20,000 metres of RC drilling and 3,300 metres of diamonddrilling have been completed. The contract to complete the bankable feasibilitystudy of a 300,000 tpa plant located at Amesmessa was awarded to GRD Minproc PtyLtd ("Minproc") on 31 May 2004. The geology and mining sections being preparedby RSG Global Pty Ltd ("RSGG") under contract to Minproc. The Feasibility Studyis progressing well and will be published in September 2005. During the quarter the company continued to operate and optimise the existingpilot plant operation at the Tirek mine site. Gold production for the quarterwas 5,783 ounces. 2.0 Operations 2.1. Safety & Environment. • There was one Lost Time Injury during the second quarter 2005. • There were no environmental incidents reported. 2.2 Mining • A total of 23,400 tonnes of ore at a grade of 13.0g/t was mined during the quarter. Waste removal amounted to 233,872 tonnes and total material moved was 257,272 tonnes. • Ore production was higher than previous quarters, mainly due to the relocation of the mining fleet to Amesmessa. Mining at surface of the main veins at Amesmessa is underway in order to confirm the mineralization observed during the recent drilling programme and to establish strategic ore stock piles ahead of the processing plant. The mined ore stockpiles are now sufficient to supply the processing plant for at least four months. • Overall mine productivity, which is waste and ore combined, was less than planned due to maintenance downtime on the CAT 365 Excavator. The maintenance problem with the hydraulic swing motor, reported last quarter, was resolved in May 2005, however the machine suffered further downtime due to the loss of the engine cooler. A replacement unit had been ordered and delivered during July 2005. The mining at Amesmessa is being undertaken by a local mining contractor. A second hand excavator has been procured, and is expected to be delivered to site next quarter, once the supplier, Caterpillar, has completed an extensive overhaul. This unit will be used to replace the current mining contractor's excavator, with a view to reducing operating costs. • Enquiries have been made with respect to identifying an alternative local mining contractor. 'Cosidel', a Turkish owned, Algerian based, civil and quarrying contract company has recently visited site and are currently preparing a proposal to carry out both the mining operation and the maintenance of the mining fleet. 2.3 Processing • The plant milled a total of 12,748 tonnes at a grade of 15.06 g/t during the quarter. • Gold production during the quarter was 5,783 ounces. • Mill availability was 72%. Plant recovery and throughput rates were 96.8% and 8.1 tph respectively; • Plant availability was low due to an unplanned maintenance shutdown in June, related to the failure of the mill drive gearbox bearing. The gearbox has been repaired and a replacement drive shaft assembly has been ordered and is expected to be delivered in August 2005. 3.0 Development 3.1 Exploration The initial exploration drilling campaign was completed last quarter. The main exploration activities currently being conducted include: • Compositing and assaying of drilling samples collected from outside the known mineralised zones; • Quartering and assaying of drill core samples collected from the extensional drilling at Tirek; • Trenching and sampling of several surface veins at Amesmessa. 3.2 Projects Delivery of the final survey data has allowed the completion of the geological databases for Tirek Veins XIV/XV and II/III by Maxwell Geoservices Pty Ltd ("Maxwell"). The geological database for Amesmessa Veins 8 and 9 was issued last quarter. Maxwell issued the geological database for Tirek Veins XIV and XV in May 2005. The geological database for Tirek Veins II and III were issued in July 2005. Geological resource modelling of the major mineralised veins at Amesmessa (Veins 8 and 9) was completed and reported last quarter. Resource modelling of the main veins at Tirek (Veins XIV and XV) commenced late June 2005. As previously announced the completion of the geological resource models for the main veins at Tirek has been delayed pending delivery of the fully validated databases. The geological modelling and mine design and scheduling scope of work for the Feasibility Study is being performed by RSGG, as a subcontractor to Minproc. Further resource modeling work was carried out by RSGG on Tirek Veins II and III in July 2005. Open cast mine design and mine production schedules were completed on Tirek Veins II,III,XIV and XV in late July, early August 2005. A number of smaller veins, at both Amesmessa and Tirek, are being modeled by Maxwell. This work is also expected to be completed by early August 2005 and the geological models will be used to identify near surface ore sources which can be used to supply feed for the new plant once the main veins modeled by RSGG have been mined. The airstrip at Tirek was commissioned during the quarter, and is now being utilized for transferring gold bullion on a regular basis. The airstrip is currently suitable for either a 'Pilatus' or a nine seater Cesna. Further minor works are being planned, and once complete the airstrip should be capable of receiving larger light aircraft. 4.0 Outlook The outlook for the third quarter 2005 is for a continuation of the improved mine production rates and increased mine grades. Gold production in the third quarter should increase as plant availability improves after the replacement of the ball mill drive assembly, and the higher plant feed grades. The Feasibility Study is scheduled to be completed in September 2005. 5.0 Key Statistics Key Performance Indicator Units Quarter Ending Quarter Ending Quarter Ending Quarter Ending June 2005 March 2005 December 2004 September 2004 Mine Performance Ore Mined Tonnes 23,400 22,704 12,214 9,867 Grade Au g/t 13.0 9.73 11.80 10.97 Waste Mined Tonnes 233,872 383,539 396,243 506,962 Strip Ratio Waste:Ore 10 17 32 51Plant Performance Ore Milled Tonnes 12,748 11,758 13,991 16,223 Grade Au g/t 15.06 11.06 12.10 13.81 Gold Poured Oz 5,783 4,355 5,350 7,101 Gold Recovery % 96.8 96.7 96.7 96.6Exploration RC Drilling metres 0 0 0 0 Diamond Drilling metres 0 157 923 346 ENDS For further information contact:GMA Resources Tel: + 61 400 228 234Colin Ikin, Chief Executive Website: www.gmaresources.plc.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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