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Timmins Gold lifts Q2 gold production

19th July 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Canadian gold miner Timmins Gold has lifted second-quarter gold production from its flagship San Francisco gold mine, in Mexico, by 20.8% year-on-year to 28 024 oz, in line with expectations.

"During the second quarter of 2013, we showed the benefits of an ongoing focus on operational stability. The move to 12 m lifts from 8 m caused a slight delay in the number of ounces coming out of the leach pads; however, this has now stabilised. Our continuing focus will be on producing gold at the best possible margin,” CEO Bruce Bragagnolo said in a statement.

He added that the company had completed a 207 000 m drill programme, which was now being modelled for the mine plan and resource/reserve update, expected in September.

Timmins Gold said it was proceeding with modifications to increase throughput at the existing crushing circuit by adding a larger crusher and screen at a cost of $3-million. This was expected to take production capacity to an average of 24 000 t/d by the end of the third quarter.

Despite the crushing equipment for the third stage of expansion having arrived on site, the company decided to defer its installation until the new mine plan was in place. The third crushing circuit would take potential throughput to more than 30 000 t/d.

During the quarter, the company also installed a new carbon strip column and constructed 25 ha of new leach pads next to the existing ones.

Timmins Gold expects to produce 125 000 oz of gold this year.

Further, Timmins Gold also said the Sprott Resource Lending Partnership had waived the 1% anniversary fee that was due under the credit agreement dated July 3, 2012. The anniversary fee was to be paid in common shares, if the loan was not repaid by July 5.

The $18-million credit facility would now be due by December 31, with interest payable at a coupon rate of 8%.

Edited by Creamer Media Reporter

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