Saracen grows mineral reserves
PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has reported a 32% increase in its reserves, which now stood at 3.3-million ounces, underpinning production plans of 400 000 oz/y.
Saracen on Thursday reported the 800 000 oz addition to its mineral reserves, despite the 330 000 oz depletion, with discovery costs estimated at A$30/oz.
MD Raleigh Finlayson said that the company was now set up to generate substantial production and cash flow for many years, fully supported by low-cost reserves located in close proximity to its existing mines.
“To define over one-million additional ounces in reserves in just 12 months is an outstanding result. To do it at an average cost of A$30/oz and have all the reserves at or near our existing mills is exceptional.”
Finlayson said that the company’s future was now fully underwritten by long mine life and reserves, with the company having a pipeline of growth underpinned by an additional six-million ounces in resources.
“When this is viewed against our seven-year, unbroken track record of meeting or beating guidance, it is clear that Saracen is ideally positioned as a highly reliable Australian gold producer with substantial production and a strong growth outlook.”
The gold miner has set aside A$112-million for growth capital this financial year, which will exclude the expansion of the Carosue Dam mill to 3.2-million tonnes, and achieving steady state production of 400 000 oz/y.
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