Rio Alto output rises above guidance
TORONTO (miningweekly.com) – Vancouver-based miner Rio Alto Mining on Thursday said gold production exceeded guidance for both the first and second quarters of the year owing to a better-than-expected ore grade of 0.647 g/t for the second quarter, compared with the forecast grade of 0.47 g/t.
Rio Alto’s flagship La Arena gold mine, in Peru, produced and sold 48 427 oz of gold during the quarter ended June 30, 4 822 oz more than planned for the period, despite temporarily suspending activities at the mine at the end of May, after local protests blocked access to the mine for several days. Gold production was up 33% quarter-on-quarter.
The company added that it had, for the half year, poured 84 783 oz of gold, compared with the 78 553 oz planned for the period.
As part of its 2013 operational strategy, the company was optimising its mining activities at La Arena and management believed that, irrespective of the recent decline in the gold price, its mining operations would continue to generate strong positive cash flows.
Rio Alto reaffirmed its production guidance of 190 000 oz to 210 000 oz of gold production for the year.
Meanwhile, permitting for the La Arena Phase 2 project was under way and a feasibility study for the project was scheduled to be completed by the end of the first quarter of 2014. The company had originally intended to fund the second phase with cash flow from its gold oxide mining operations.
However, as a result of the recent drop in metal prices and the need to conserve existing cash reserves, the company decided to evaluate alternative sources of funding.
The company was also searching for a COO, with an appointment expected before the end of the year. President and CEO Alex Black has, in the meantime, assumed the role and responsibilities as COO.
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