February production down at Mintails
PERTH (miningweekly.com) – South Africa-focused Mintails on Friday told shareholders that it had lost some 20 kg, or 650 oz of gold, from its Mogale operation, near Johannesburg, after a temporary reduction in production.
During early February this year, the Mogale facility was hit by a severe thunderstorm, with a lighting strike setting the substation alight and damaging the transformer, switch gear and the high tension breaker.
The Gold 1 plant was offline for some 14 hours while the damage was repaired, the ASX-listed Mintails said, with the company missing some 1.5 planned elutions of the circuit, while a portion of the carbon inventory spilled into the containment area.
It was initially expected that production would be lower over the ensuing two weeks while the carbon profiles corrected, but Mintails said on Friday that gold production did not recover as expected.
The company initiated an internal and independent external audit of the production process to identify the cause of the variances from planned production, and the internal audit identified an apparent consistent upward bias in assay results from the company’s external assaying service provider.
Duplicate samples sent to a third party confirmed the discrepancy, Mintails said.
As a result, the company decided to temporarily cease mining operations at the Princess pit, until check samples could be verified, while mining operations at the Lancaster and Main Reef pits continued.
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