After a record first quarter for 2015, G-Resources Group has continued its strong performance at the Martabe Gold-Silver Project in Sumatra. During the second quarter the mine and process plant treated 993,000 tonnes of ore at 2.81 grams/tonne head grade, yielding gold production of 72,096 ounces and silver production of 631,189 ounces.

On an annual basis the gold production was equivalent to more than 288,000 ounces and silver production the equivalent to more than 2.5 million ounces. Production was not quite as high as the March quarter when 84,220 ounces of gold were poured and 657,364 ounces of silver.

As a consequence of the good production and continued focus on its Martabe Improvement Program (MIP), G-Resources says the All-In Sustaining Costs (AISC) for the second quarter were at $537 per ounce sold. After reviewing production and cost forecasts for the remainder of the year, and as a result of good performance in the second quarter, the company maintains its full year 2015 guidance to 285,000 ounces of gold and 2.3 million ounces of silver with AISC forecast to be in the range of $600-$700/ounce sold.

Gold and silver revenue received from sales was $93 million for the quarter and site operating costs were well under budget as a result of the continued focus on the MIP.

Total mine material movements of ore and waste were 3.3 million tonnes for the quarter, exceeding plan by 17%. The waste to ore strip ratio at 2.29:1 for the second quarter was higher than plan and this was primarily due again to a drier quarter than expected enabling additional mining of waste material for accelerated tailings storage facility construction.

The process plant has continued to perform well with gold recovery 3.24% over plan for the quarter and silver 1.07% above plan. Mill throughput at 993,000 tonnes was slightly below the levels of 1 million tonnes as achieved in the last three quarters. The main reason was due to the ores mined at the south-east ridge of Purnama where very hard ores were sourced.

The feasibility study for the potential installation of a secondary crusher has been completed and a project manager has been recruited for the next stage of Front End Engineering Design following Board approval to continue.

Safety performance in the quarter remained generally good, with no lost time injury recorded. The company reports that its first stand-alone Sustainability Report has been prepared according to the Global Reporting Initiative guidelines. 

Exploration activity accelerated in second quarter with five diamond drill rigs operating close to the Martabe operations and two diamond drill rigs operating in the regional exploration area of Tani Hill and Tango Papa after a temporary suspension of the company's regional and near mine exploration programs in the first quarter.

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