13th Oct 2009 08:41
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AIM: GMA |
13 October 2009 |
GMA RESOURCES Plc
("GMA" or "the Company")
Production Update for September 2009
GMA announces that in September 2009 the Amesmessa gold mine in Algeria produced 2,303 ounces of gold and 480 ounces of silver. Accordingly, the mine produced a total of 26,727 ounces of gold in the first nine months of 2009 compared with 15,864 ounces in the first nine months of 2008.
Production this month has fallen short of forecast largely due to a breakdown of the drill rig used for laying explosive charges. Whilst this rig has now been repaired from parts taken from another rig on site, measures to resolve bureaucratic obstacles and shipping difficulties for these and other key spares continue.
Average cash costs of production as at 30 June 2009 are US$435 per ounce and average all inclusive costs of production, including financing costs and depreciation, are US$535 per ounce.
Douglas Perkins, Chief Executive of GMA, commented:
"We continue to pursue every option for the Amesmessa gold mine to be able to cope more easily with equipment failure and overcome its more intractable supply issues. In the meantime, we are pleased that ENOR Spa's operations were profitable as at 30 June and are benefitting from the higher than budgeted price of gold."
Enquiries:
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GMA Resources Plc Douglas Perkins |
Tel: +1 514 806 6788 |
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John East & Partners Limited, a subsidiary of Merchant Securities plc (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.
Related Shares:
Kemin Resources