7th Jul 2009 07:00
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AIM: GMA |
7 July 2009 |
GMA RESOURCES Plc
("GMA" or "the Company")
Production Update for June 2009
GMA announces that in June 2009, the Amesmessa Gold Mine in Algeria produced 2,503 ounces of gold and 520 ounces of silver. The mine produced a total of 18,637 ounces of gold in the first half of 2009 compared with 10,620 ounces in the second half of 2008. Approximately 58,000 ounces of gold remained on the pads as of 30 June. Gold sales for the first half of the year averaged US$914.29 per ounce against a budgeted price of US$802 per ounce.
June's shortfall against expected monthly gold production occurred because of a mechanical failure of tertiary crushers and inadequate supply of spare parts, particularly for the tertiary crushers. GMA holds significant contingency stocks of mining consumables, however, it is not feasible for these stocks to include every piece of equipment critical to mining operations.
Due to the increasingly high volumes of activity in Algerian ports and bureaucratic obstacles for international shipments, the Company has experienced delays in receiving critical supplies. Significant measures are being taken to resolve these structural problems, including a move to roll-on/roll-off shipping, where a truck originating in Algeria will collect goods from Europe and then return to Algeria by daily ferry from Marseilles. .GMA has also recently appointed a senior executive as Country Manager, with specific responsibilities to improve the efficiency of supply operations.
Douglas Perkins, Chief Executive of GMA, commented:
"As previously announced, we will continue to report production on a monthly basis during Q3 2009 to keep shareholders informed of production levels on a timely basis. We are disappointed that June production falls short of our 2009 plan, particularly after record production in May. We are taking significant steps to improve efficiencies within our supply chain."
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.
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