PERTH (miningweekly.com) – The Cracow gold mine, in Queensland, has again failed to meet production targets, owner Aeris Resources said on Wednesday.

For the 2022 financial year, Aeris had set a production target of between 56 000 oz and 59 000 oz, at an all-in sustaining cost (AISC) of between A$1 775/oz and A$1 825/oz for the operation.

However, the ASX-listed company told shareholders that the mine had only produced 53 920 oz during the full year, at an AISC of A$1 911/oz.

“Unfortunately, Cracow again underachieved on its production targets, primarily due to lower gold grades realised. Despite a challenging operating environment, including Covid impacts, a tight labour market and inflation-related price increases, there were numerous significant achievements for Aeris in 2022,” said Aeris executive chairperson Andre Labuschagne.

Aeris noted that a significant amount of work had been undertaken to address these issues at Cracow, with geological models rebuilt to increase grade confidence and improve production planning for 2023. Productivity in remanent mining areas was also lower than anticipated and planning assumptions for these areas have been revised.

Meanwhile, operations at Tritton have improved, as the turnaround strategy continues to deliver results.

Copper production in the June quarter reached 5 126 t, with the operation hitting its full year production target of between 18 500 t and 19 500 t, with the production of 18 581 t. AISC expectations, however, were not met, with Tritton producing at anAISC of A$5.10/lb, higher than the target of between A$4.60/lb and A$4.85/lb.

“Tritton recognized the need to change operating strategy mid-year and has delivered improved production performance. Life extension (Budgerygar and Avoca Tank) and exploration projects (Constellation) at Tritton were progressed during the year and the Golden Plateau deposit at Cracow is an evolving exploration story that we are quietly excited about,” said Labuschagne.

“And let’s not forget the transformational acquisition of Round Oak Minerals, which means we start 2023 with four operating mines, a long-life development project in Stockman, strong cash balance and no debt. Our focus is now well and truly on delivering across our portfolio in 2023.”