The Martabe Gold-Silver Project of G-Resources Group celebrated the first anniversary of gold production on July 24. In its first year the mine has produced more than 200,000 ounces of gold and almost 1 million ounces of silver, exceeding the company’s ramp-up expectations.
The June quarter was the second full quarter of operations at the project and by June 30 the mine and process plant were operating at, or above, design capacity while quarterly gold production exceeded target. There were 70,212 gold ounces poured at a cash cost of US$510 per ounce and average gold price of $1431 per ounce, compared to 63,633 ounces in the first quarter at a cash cost of $596 per ounce and an average gold price of $1636.
The year-to-date total at June 30 was 133,845 ounces and the revised guidance for 2013 has been increased from 250,000 to 280,000 ounces of gold at a cash cost of $512 per ounce.
Also during the June quarter there were 382,320 silver ounces poured for a half yearly total of 626,703 ounces. The gold and silver revenue received from sales was $98.5 million. Site operating costs for the quarter were under budget as management looked to reduce costs across all activities. Silver production is now increasing after lower production earlier in the year and forecast is now revised to 1.7 million ounces for the year, down from 2.2 million ounces.
Safety performance in the quarter remained excellent and during the month of June the mine achieved a full year of operations without a single lost time injury. During the quarter, the company received recognition from the Indonesian Government for safety performance with the receipt of a National Safety Award.
Mining operations at Purnama are proceeding according to plan with total ore and waste mined meeting the target for the quarter. Grade control reconciliation with the mill head grade is good. The waste to ore strip ratio is decreasing and is anticipated to reduce further in coming months as the ore body is opened up.
The process plant has continued to perform well with both gold and silver recovery rates better than anticipated. Mill throughput has continued to improve through the quarter with daily averages achieving 86% of design capacity. During the last few weeks of the quarter, the mill operated at close to 110% of design capacity.
Also during the June quarter G-Resources formed and inaugurated a new community consultation committee elected by members of the community and endorsed by the Government of South Tapanuli.
Resource development drilling around the Purnama and Uluala Hulu deposits continues to yield positive results.