8th Sep 2009 15:55
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AIM: GMA |
8 September 2009 |
GMA RESOURCES Plc
("GMA" or "the Company")
Production Update for August 2009
GMA announces that in August 2009 the Amesmessa Gold Mine in Algeria produced 2,902 ounces of gold and 621 ounces of silver. Accordingly, the mine produced a total of 24,424 ounces of gold in the first eight months of 2009 compared with 13,914 ounces in the first eight months of 2008.
Production continues to fall short of forecast, whilst measures to resolve bureaucratic obstacles and shipping difficulties for key spares, such as crusher parts, continue.
Average cash costs of production as at 30 June 2009 are $435 per oz. and average all inclusive costs of production including, financing costs and depreciation, are $535 per oz. Sonatrach (RCH) and GMA have now agreed and approved a five year plan for increasing the capacity of Amesmessa starting with exploration, including converting resources to the Canadian 43-101 standard.
Douglas Perkins, Chief Executive of GMA, commented:
"We continue to pursue every option for the Amesmessa Gold Mine to reach its full production capability and overcome its more intractable supply issues. In the meantime, we are pleased that ENOR's operations are now profitable on a cash basis and expect to release a financial update on 23 September 2009."
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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