13th May 2009 07:00
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13 May 2009 |
AIM: GMA |
GMA Resources Plc
("GMA" or "the Company")
Production Update for April 2009
GMA announces that in April 2009, the Amesmessa Gold Mine in Algeria produced 2,858 ounces of gold and 538 ounces of silver. These production levels are lower than expected and were due to supply chain problems for certain parts and equipment, the lack of which resulted in periodic interruptions to production.
In addition to increasing the effort that both GMA and its Algerian partners apply to the resolution of these problems, the Company has dismantled an idle crushing circuit in Tirek and redeployed it to support operations in Amesmessa. This project has progressed well and the crushing circuit is expected to be operational by the end of May. The directors anticipate that this could add 500 tonnes per day to the 1,750 tonnes per day design capacity of the existing crushing circuit at Amesmessa and, therefore, help to recoup some of the crushing capacity lost in the first four months of the year. The former Tirek crushing circuit involves a two stage crushing process and will have a separate agglomeration circuit.
During the first four months of 2009, the Company achieved an average gold sale price of US$902 per ounce, which was US$100 per ounce greater than expected at the start of the year.
Douglas Perkins, Chief Executive Officer of GMA, commented:
"As previously announced, we will continue to report production on a monthly basis during Q2 2009 to keep shareholders informed of production on a timely basis. Although we are disappointed with April production and will be working to improve the efficiency of supply operations in the weeks ahead, we are very pleased that we will be expanding crushing capacity by almost a third for no additional capital expenditure."
Enquiries:
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GMA Resources Plc Douglas Perkins |
Tel: +1 514 806 6788 |
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John East & Partners Limited (Nominated Adviser) Bidhi Bhoma |
Tel: +44 (0) 20 7628 2200 |
Notes to Editors:
GMA owns a controlling 52 per cent. stake in ENOR spa ("ENOR"), the Algerian based operating company for the Amesmessa project, with the remainder owned by Sonatrach, the Algerian state-owned oil and gas company.
ENOR holds the exploitation authorization to the Tirek-Amesmessa property, an area of some 1,417 km2, located approximately 450km south west of the city of Tamanrasset, in southern Algeria. Amesmessa is an open pit heap leach gold mine located in the extreme south of the permit area. The Tirek gold mine is located in the northern third of the exploration permit area, some 60 km north of Amesmessa. Research to date suggests that the Zita Zone, which lies between Tirek and Amesmessa, offers considerable potential for the development of additional prospects amenable to open-pit mining. GMA plans to expand upon resources outside of the major 80km north/south Tirek-Amesmessa fault and other exploration targets on the property.
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