VANCOUVER (miningweekly.com) – The TSX-V-listed stock of junior gold producer Goldsource Mines on Friday fell by as much as 20% after the company revised lower its full-year guidance, citing weather-related issues, a delay in the shipment of a 40 t truck to site and low-grade ore.
The Vancouver-based company reported that throughput and production from the Eagle Mountain gold mine, in Guyana, had been affected in July and August.
Goldsource advised that processing operations were suspended on July 23 to reduce consumable costs and focus on developing access to Pit #4 and preparing Pit #4 for openpit mining. Eagle Mountain is expected to start processing higher-grade material from Pit #4 in early September, according to a statement.
While the company has reduced its 2016 production guidance to between 1 400 oz and 2 100 oz of gold, down from the previous guidance of 3 600 oz, the phased expansion approach to Eagle Mountain remains intact.
Management has applied for a permit from the Guyana government to operate a low-impact intensive cyanide leaching circuit (SLR unit) at Eagle Mountain, which is expected to substantially improve gold recovery and production from the mine. However, the permit that was expected in July has not yet been issued and there is no firm date for its issuance.
The throughput expansion plan and the contemplation of integrating an SLR unit into the process flow sheet warrants completion of a prefeasibility study (PFS) by the first half of 2017, the company advised. Goldsource expects the PFS to support the design, purchase and deployment of the Phase II plant, which should increase throughput capacity to about 4 000 t/d.
The company expects to achieve this expansion through implementing a night shift starting September. It will also add a second modified scrubber to the Phase II plant, double the current falcon concentrators from two to four units and implement the Phase II expansion for less than the $18.3-million total capital budget outlined in the August 2014 preliminary economic assessment.
Goldsource’s TSX-V-listed stock fell by C$0.09 to C$0.36 apiece by Friday afternoon.