PERTH (miningweekly.com) - Gold miner Resolute has reported a $25-million hike in the price for its expansion of the Syama operation, in Mali.

In July last year, the board of Resolute approved the $241-million expansion of the Syama operation to establish a one-million-ton-a-year oxide processing circuit and to increase production to 270 000 oz/y, over the first nine years of operations.

With the project expansion now well under way, and some $35-million already spent, Resolute told shareholders on Wednesday that a review of the long-term requirements of the project had been concluded, with the engineering firm making design recommendations, which included a modified two-stage crushing circuit with a new 3.5 MW semiautogenous grinding mill identical to the oxide circuit.

This change of scope, to meet the high crushing work index, had increased the capital estimate for the sulphide expansion from $55-million to $85-million.

Resolute said on Wednesday that tenders for all site-based activities connected to the expansion project had now been issued, and it was anticipated that all orders would be placed during the March quarter.

The Syama operation produced a record 46 188 oz of gold during the quarter ended December, up from the 45 272 oz produced during the previous quarter.

Resolute also reported that its Ravenswood project, in Australia, generated some 33 123 oz during the same period, while the Golden Pride project, in Tanzania, delivered 28 088 oz.

Total gold production for the three months to December reached 107 399 oz, compared with the 115 544 oz reported in the previous quarter. The decrease in gold production was attributed to a reduction in head grade at the Ravenswood mine, and reduced plant availability at Golden Pride.

While gold production at Ravenswood was expected to remain unchanged during the March quarter, it would likely reduce at Golden Pride, owing to the completion of mining at the operation and the introduction of lower-grade run-of-mine stocks to the milling circuit.

At Syama, gold production over the next quarter was expected to increase with improved throughput within the processing plant.

For the full 2013, Resolute was expected to produce some 415 000 oz of gold.