JOHANNESBURG (miningweekly.com) – Gold miner Resolute Mining produced 315 169 oz of gold from its mines across Australia and Africa in the 2016 financial year, which was in line with its guidance of 315 000 oz, but slightly below its performance of 2015.

The company, which operates the Syama mine, in Mali, and the Ravenswood operation, in Queensland, reported on Thursday that its gold sales were 340 540 oz, compared with a guidance of 340 000 oz.

All-in-sustaining costs (AISC) were A$1 210/oz, which Resolute stated was significantly better than the original guidance of A$1 280/oz and also lower than the revised guidance of A$1 220/oz provided in April.

At the end of June, Resolute had A$101-million cash and bullion at hand.

“Despite processing reducing grade stockpiles at Syama and managing the closing stages of Mt Wright at Ravenswood, our team have reduced costs and maintained production,” commented MD and CEO John Welborn.

Group gold production for the 2017 financial year was forecast to be at least 300 000 oz, with production set to be derived from a combination of processing oxide and sulphide ore from satellite openpit mining at Syama, Syama sulphide stockpiles, Mt Wright underground ore and the recommencement of openpit mining at Nolans East at Ravenswood.

The Syama mine was expected to produce at least 200 000 oz in the 2017 financial year, while production at Ravenswood would be maintained at about 100 000 oz.

Group AISC was forecast to be A$1 280/oz.

Resolute stated that gold sales would again exceed production, as the gold in the circuit at Syama was progressively reduced.

Welborn reported that Resolute had completed three major project studies in the 2016 financial year, which “revitalised and revalued its existing assets”.

He said the 2017 financial year would be a “transitional year” for the company, as it prepared to invest in long mine life extensions at Syama and Ravenwood, while preparing for future production at the Bibiani project, in Ghana.

At the end of last month, Resolute’s board gave its approval for an underground expansion at the Syama mine, which would grow the operation’s production to 250 000 oz/y.

Resolute had also been working on a plan to extend Ravenswood's operating life beyond the Mt Wright underground mine, and reported in June that it would use openpit resources to return the operation to its former glory, with production to start from the Nolans East mine.

The company had also recently completed a feasibility study for Bibiani, which confirmed the project’s development pathway. The study contemplated production of up to 1.2-million tonnes a year from long-hole open-stope underground mining. Processing of the ore would occur at the existing Bibiani processing plant, with most of the $72-million upfront capital allocated to the refurbishment of the plant. Gold production was expected to be maintained at about 100 000 oz/y, which would sustain a five-year mine life on the initial reserve.