VATUKOULA GOLD MINES PLC
13 June 2014
Vatukoula Gold Mines plc
("Vatukoula" or "the Company")
Operational Update for the three months ended 31st May 2013
Vatukoula Gold Mines Plc (AIM:VGM), the AIM listed gold producer, is pleased to announce its operational results from its 100% owned Vatukoula Gold Mine in Fiji for the third quarter ended 31st May 2013.
Operating Results | 3 months ended May 2014 (Q3) | 3 months ended Feb 2014 (Q2) | 3 months ended Nov 2013 (Q1) | 3 months ended Aug 2013 (Q4) | 3 months ended May 2013 (Q3) |
Underground Mining | |||||
Yingbin Ian He, Non-Executive Chairman of Vatukoula Gold Mines, commented:
"As previously advised this quarter's production remained at a restricted rate, as we continue work to secure long - term financing. We have maintained our policy of carrying out only essential development required for current production requirements and limited long-term development when possible.
We have begun discussions with some strategic investors to fund the additional US$ 20 million as highlighted in the general meeting notice."
Underground Production and Development
Mining operations at Vatukoula continue to be limited by capital and cash flow constraints. We have prioritised our mining operations on production stoping followed by essential development. The program to open new areas has been maintained, but on a limited basis. Ore production can be maintained in the short term, but development to open new areas must be initiated before our long term production targets can be achieved.
Total tonnes of ore and waste mined for the third quarter ended May 2013 decreased to 85,893 tonnes compared to 94,793 tonnes in the same period last year. The lower tonnages were primarily driven by decreases in operating and capital development metres.
The ore delivered from underground for the third quarter was 76, 950 tonnes compared to 100,182 tonnes in the same period last year. This reduction was due to lower stope availability, lower average stope heights and lower strike drive development which is typically delivered as ore.
The average underground grade for the period was 4.85 grams per tonne, which was higher than the same period last year (4.53 grams per tonne). The year on year variance is a result of some higher grades (6.27 grams per tonne) delivered from the Philip Shaft.
The cash costs have increased from US$ 1,812 per ounce of gold and US$ 157 per tonne of ore in the 3 months period ending May 2013 to US$ 1,938 per ounce and US$ 196 per tonne for the 3 months ended May 2014. These increases in costs are primarily driven by lower tonnages and lower grades processed.
Surface Production
Production for the 3 months ended May 2014 from surface oxides and sulphide waste piles was 24,921 tonnes at a grade of 2.50 grams per tonne (40,424 tonne at 2.36 grams per tonne for the same period last year). Ore was delivered from both sulphide waste dumps and surface oxide production. Sulphide waste is being processed through the sulphide circuit.
Vatukoula Treatment Plant ("VTP")
During the 3 months ended May 2014, the VTP processed 76,950 tonnes compared with 100,182 for the same period last year. The decrease was driven by lower underground and surface ore delivered to the mill. The average grade increased to 4.06 grams per tonne from 3.48 grams per tonne delivered over the same period. This was driven by higher grade ore from underground mining operations and lower tonnages mined from surface.
Gold recovery was 80.89% for the 3 months ended May 2013. This was higher than the comparable period last year (79.76 %). The increase in recovery has been driven by the higher grades delivered to the VTP.
Enquiries: | |||
Vatukoula Gold Mines plc. | Pelham Bell Pottinger | ||
Ian Ying Bin He | + 44 (0)20 7440 0643 | Daniel Thöle | + 44 (0)20 7861 3232 |
W.H. Ireland Limited | |||
James Joyce | + 44 (0)20 7220 1666 | ||
James Bavister | |||
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