Freda Rebecca Mine’s gold output up 23pc

Oliver Kazunga Senior Business Reporter
MWANA Africa says gold production at its Zimbabwean Freda Rebecca Mine has increased by 23 percent in the third quarter, to 16,555 ounces from 13,503 oz in the previous quarter.
The company’s quarterly report, released yesterday, attributed the growth to improvements in feed grade, recovery and milled tonnes. The tonnage milled during the period under review rose by 17,5 percent to 319,768 tonnes due to a 14.4 percent increase in mill running hours and a 2,3 percent increase in the throughput rate, it said.

“Improvements in feed grade, recovery and milled tonnes resulted in gold production rising by 23 percent to 16,555oz from 13,503oz, in the previous quarter. Tonnes milled rose by 17.5 percent to 319,768 tonnes in second quarter. The increase in running hours resulted from improved maintenance and the benefits of full shell relining done on Mill 2 in the previous quarter,” said Mwana Africa.

During the third quarter, a greater focus on the main producing stopes was expected to restore underground ore production to the levels prevailing before the past quarter’s decline.
Gold recovery, for the quarter under review, was 3,2 percent higher at 80 percent compared to 76,8 percent in first quarter 2013.
However, Mwana Africa said plant recovery was below its planned 83 percent due to the unavailability for most of the quarter of tank 0, the pre-aeration tank.

“The tank break-down has been addressed with the necessary repairs carried out and the problem should not be experienced in the current quarter,” read the report.
Cash costs, for the quarter under review, decreased to $879/oz from $1,078/oz in the first quarter of 2013 as a result of the 23 percent increase in gold production.

“This increased gold output meant that fixed cost overheads could be spread over a greater number of ounces,” said Mwana Africa.
Meanwhile, the company also reported that production of nickel in concentrate, at its Trojan Mine, rose by five percent to 1,989 tonnes due to an increase in tonnes mined and milled.
“Tonnes mined were three percent higher at 160,741 tonnes, whilst tonnes milled were eight percent higher at 161,107 tonnes. The apparent discrepancy was due to drawings from the ore stockpile created in prior quarters and the return to production of some of the underground mobile equipment that had been taken out of commission for refurbishing. Trojan has completed some 60 percent of the refurbishment programme and expects to complete it in third quarter of next year,” said Mwana Africa.

It said, there was a two percent decline in head grade to 1,496 percent due to mining lower-grade areas in terms of the mine plan.
This, Mwana Africa said, was still above the long term average of 1.05 percent after recoveries in terms of the mine plan.

“Recoveries were two percent down at 82.5 percent as a result both of the lower head grade. This is within the contractual limits of the off-take agreement and Trojan is testing the benefits of reducing the mass pull in the concentration process; by using a combination of depressants and reagents, to improve the ability to reduce the content of deleterious material,” read the report.

The mining concern expressed optimism that this would have a positive impact in terms of a cleaner concentrate overflow though, it would lead to reduced recoveries.
It said nickel sales were seven percent higher, at 2,008 tonnes due to the quarter’s higher present production and sales from stock carried forward from the previous quarter.
The average nickel price achieved for the quarter was five percent higher quarter-on-quarter at $18,592 tonnes.

“Cash costs rose by one percent to $13,876 per tonne, due to the continuation of the mobile plant refurbishment programme and an increase in the nickel price (as revenue increases, costs attributed to the off-take agreement also rise) while all-in sustaining costs were two percent lower at $14,450 a tonne. As the company returned to profit,it has been possible to reverse a deferred tax asset, originally charged against the all-in sustaining cost reported in the first quarter accounts,” it said.

The costs allocated over and above normal operating costs for the past quarter were estimated at $214,000 making a total of $456,000 for the year to date and an estimated additional $300,000 will be spent in the last quarter.

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