PERTH (miningweekly.com) – Dual-listed gold miner Perseus Mining has reported record production from its Edikan mine, in Ghana, for the three months to June 30, as higher gold grades boosted output.

Gold production for the quarter reached 64 669 oz, which was up by 36% on that produced in the March quarter and 52% higher than that produced in the previous corresponding quarter.

Output for the six months to June 30, at 112 119 oz, was 2% above the top-end of guidance of between 100 000 oz and 110 000 oz.

Perseus on Monday said 1.6-million cubic feet of ore and waste were mined during the quarter under review, some 19% more than in the March quarter. Ore mined during the quarter included 1.2-million tonnes of primary ore, grading 1.4 g/t gold.

Ore movements during the quarter were down 26% on the previous quarter; however, the grade of the mined ore was some 11% higher than in the March quarter, as higher-grade ore zones were accessed.

Ore stockpiles decreased by 439 000 t to 3.4-million tonnes, grading 0.6 g/t gold. Contained in the stockpile were some 66 500 oz of gold, a decrease of 15 550 oz, or 19%, quarter-on-quarter.

Perseus noted that the decrease in stockpiles reflected the deficit of ore mined relative to ore milled during the quarter.

Meanwhile, all-in site costs for the quarter decreased by 24% on the March quarter, to $685/oz, on the back of a number of factors, including more effective procurement, lower-than-forecast capital expenditure on relocating housing owing to delayed access to the new mining areas, as well as the strong gold production and an expected increase in head grade of processed ore.

For the half-year, all-in site costs reached $777/oz, which was 32% below the bottom-end of the cost guidance for the interim period.

Some 63 308 oz of gold were sold at about $1 307/oz during the quarter.

Looking ahead to the 2016 financial year, Perseus was expecting to produce between 190 000 oz and 201 000 oz for the full year, with all-in cash costs estimated at $1 100/oz to $1 200/oz.

The miner recently received clearance to extend mining operations at its Edikan mine, in Ghana, to include mining of the Fetish, Bikitsi, Chirawewa and Esuaja North gold deposits. This would be the company’s focus over the next 12 months.

As a result, fresh ore from the Fetish, Chirawewa and Fobisno deposits would need to be supplemented by lower-grade ore drawn from the existing stockpiles, for a period of several months, to ensure that sufficient ore was available to feed the processing plant.

As a result, gold production was expected to temporarily reduce relative to current levels, as the lower-grade stockpiled ore was processed.

However, once sufficient fresh ores were available towards the end of calendar 2015, production would increase back to current levels.