PNG – Simberi Island ramp-up back on track

The ramp-up of Allied Gold’s Simberi Island gold project is back on track with September quarter production of 17,642 ounces meeting the company’s target.

The achievement confirms that the ramp-up is progressing following the implementation of measures to address commissioning and weather-related issues which impacted production in the June quarter.

Among the initiatives undertaken during the quarter was a significant increase in mining fleet capacity at the project.

Allied’s executive chairman Mark Caruso says: “By providing this boost to the mining fleet's capacity the company can now confidently expect to drive multiple pit pre-development works and ROM stockpiling capacity that are required to maintain the base load ore throughput to sustain production going forward.”

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After heavy seasonal rainfall impacted on June quarter production levels, the company's improved ability to stockpile ore and undertake site preparation works will provide some risk mitigation against adverse seasonal conditions.

The Simberi processing plant regularly achieved its name plate capacity of 2.2 million tonnes/annum in the September quarter as it approached the end of its commissioning phase. It is expected this upward trend will continue in the December quarter.

A number of further optimization programs are also planned relating to productivity and cost initiatives. These initiatives reflect management's main focus on achieving consistent operational results.

Mark Caruso says: “We have essentially addressed the mining bottlenecks by expanding our mining fleet and expect to take delivery of a couple of more pieces of equipment in the December quarter. Although it's still early days, the plant is also proving that it can handle the additional throughput on a consistent basis.

“In this quarter we are turning our focus on operating costs and getting more from our current activities so we can deliver sustainable increases in production while reducing our operating costs. Also, we are identifying cost saving initiatives as well as further assessing the potential for expansion opportunities.”

www.alliedgold.com.au

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