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Gold Fields aims to increase production in W Africa

24th October 2016

By: David Oliveira

Creamer Media Staff Writer

  

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JOHANNESBURG (miningweekly.com) – Gold mining major Gold Fields announced earlier today that it would like to increase gold production from its West African assets to a million ounces a year.

The company currently owns and operates two mines in Ghana, namely Damang and Tarkwa, which Gold Fields West Africa head Alfred Baku noted would jointly be able to produce about 800 000 oz/y at peak operating performance.

“We are busy working with the [mergers and acquisitions] team to see if we can get a third mine,” he said, when asked how the company intends to reach its million-ounce target.

TARKWA
Production at Tarkwa increased by 11% from 134 100 oz in the second quarter to 148 600 oz in the quarter ending September 30, owing to higher plant throughput and yield.

Total tons mined, including capital stripping, decreased by 2% from 26- million tons in the second quarter to 25.3-million tons in the quarter under review. Ore tons mined increased by 6% from 3.4-million tons to 3.6-million tons.

Grades mined increased from 1.37 g/t to 1.41 g/t, while the strip ratio decreased from 7.0 to 6.5.

The carbon-in-leach plant throughput increased by 5% from 3.30-million tons in the second quarter to 3.48-million tonnes in the third quarter, owing to more effective plant use. Realised yield increased by 6% from 1.26 g/t to 1.33 g/t owing to higher feed grades processed in line with the mining plan.

Net operating costs, including gold-in-process movements, increased by 14% from $78-million to $89-million, owing to higher ore tons mined and higher plant throughput.

Capital expenditure decreased by 14% from $43-million to $37-million owing to lower expenditure on deferred stripping as a result of lower capital tons mined.

All-in sustaining costs (AISC) and total all-in costs (AIC) decreased by 4% from $991/oz in the second quarter to $950/oz in the third quarter, as a result of increased gold sales and lower capital expenditure. This was partially offset by higher net operating costs.

DAMANG
Gold production at Damang increased by 29% from 30 200 oz in the second quarter to 38 900 oz in the third quarter, mainly owing to higher tons processed and higher yield.

Total tons mined, including capital stripping, decreased by 9% quarter-on-quarter from 5.3-million tons 4.8-million tons as a result of gaining equipment, which lowered equipment availability.

Ore tons mined were similar across the second and third quarters at 600 000 t. Total waste tons mined decreased by 11% quarter-on-quarter from 4.7-million tons to 4.2-million tons.

Head grade increased from 66.3% to 66.5% and copper recoveries decreased from 88% to 86%. As a result, gold yield increased by 3% from 0.65 g/t to 0.67 g/t and copper yield decreased 2% from 0.45% to 0.44%.

Total tons mined decreased by 1% from 3.65-million tons in the June quarter to 3.6-million tons in the September quarter, mainly owing to lower waste mined in line with the mining sequence.

Mined ore decreased by 1% quarter-on-quarter from 1.80-million tons to 1.78-million tons, while operational waste tons mined decreased by 2% from 1.85-million tons to 1.82-million tons.

Net operating costs, including gold-in-process movements, increased by 27% from $30-million to $38-million mainly as a result of a $3-million gold-in-process charge to cost in the third quarter, compared with a $7-million credit to cost in the second quarter, both related to shipment schedules of concentrate stock.

Capital expenditure increased by 88% from $8-million to $15-million owing to more construction activities at the tailings dam and waste storage facilities as a result of the dry season.

AISC and total AIC per gold ounce increased by 28% quarter-on-quarter from $599/oz to US$765/oz mainly owing to higher net operating costs and higher capital expenditure, partially offset by higher gold sales and higher copper by-product credits.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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