JOHANNESBURG (miningweekly.com) – Equipment breakdowns, increased power interruptions and grade challenges have scuppered gold miner Metallon Corporation’s hopes of increasing production in the third quarter ended September 30, narrowing output from 25 882 oz in the third quarter of 2014 to 23 999 oz.

The replacement of key equipment at the Zimbabwe-based Shamva, Mazowe and Arcturus mines over the three months, following breakdowns, had resulted in greater capacity restoration capital expenditure (capex), the company noted in a results statement on Wednesday.

These operations were also impacted by increased power interruptions, which affected underground production and plant processes.

“Metallon is looking at possible solutions to supplement grid power supply,” it noted.

Meanwhile, the company lamented grade challenges at the Arcturus and Mazowe mines, adding that measures were being taken to address these challenges, with improvements to grade and tonnage expected in the coming months.
 
The 2015 year-to-date gold production was 72 142 oz –  a 1% improvement on the same period in the prior year.
 
Owing to the reasons outlined above and power supply interruptions continuing to affect production across all operations, Metallon reduced its yearly production guidance of 150 000 oz by about 30%.

Group cash costs and all-in-sustaining costs (AISC) for the third quarter were $788/oz and $1 161/oz respectively. The AISC included capex across all mining operations.
 
NEW PROJECTS
Elaborating on its portfolio of new projects, Metallon reported that the Redwing mine, in eastern Zimbabwe, had successfully resumed operations after the mine had been dewatered to 7 level and development work had been carried out on 6 level for six months.

The first gold production in eight years from underground mining was expected later this month, while dewatering would continue to open up more reserves in the lower levels of the mine.
 
Construction on the Mazowe mine sands retreatment project was, meanwhile, almost complete; however, there had been some unforeseen equipment delays and target commissioning was now expected in early January.
 
Work on the new tailings facilities at the Mazowe and Shamva mines was progressing as planned and, barring any unforeseen disruption from the wet season, the facilities should be ready for use early in the new year.
 
CEO Ken Mekani said the company had achieved substantial gold production and had made good progress on its new projects, despite a challenging quarter and unexpected power interruptions.

“The last 12 months have been pivotal, as we have made significant upgrades and investments into the business, with an equipment replacement programme and improved operational efficiencies.

“Notably, we are extremely pleased with the reopening of Redwing mine. In the fourth quarter, Metallon is also focused on the commissioning of the Mazowe sands retreatment plant and the Mazowe and the Shamva tailings facilities. Successful completion of these projects will continue to demonstrate our ability to deliver as we target our long-term growth objectives,” he remarked.