PERTH (miningweekly.com) – The Teal gold mine, in Western Australia, has delivered above expectations, with ASX-listed Intermin Resources on Tuesday saying that both gold production and revenue exceeded the feasibility study estimates.
Mining was completed at Teal earlier this year, and the last ore was processed through the Lakewood toll milling facility at the end of March.
A full reconciliation of the mine physicals has now been completed, revealing that the mine recovered 21 836 oz of gold, which was above the 18 342 oz predicted in the feasibility study.
Revenues from gold sales also increased from the A$29.3-million estimated in the feasibility study, to A$36.5-million, on the back of both the increased production as well as higher gold prices.
The mine was operated under a risk share-profit share structure with contractor Resource Mining, with both parties funding the development on a 50:50 basis to first gold production, with the net operating cash flow shared 75% to Intermin and 25% to Resource Mining.
Intermin is currently working with Resource Mining to resolve a purported cost variation claim relating to the Stage 1 and Stage 2 projects,