KBL Mining beats bullion forecast
AUGUST 2, 2016 1:49PM
KBL Mining expects to deliver 7,500 oz of gold and 100,000 oz of silver in the September quarter after resuming production at the Pearse open pit at Mineral Hill in NSW.
Of the gold, 5,500 oz will be derived from concentrate and 2,000 oz in bullion from the CIL plant.
Bullion production for July exceeded forecast with gold derived from the CIL treatment of float plant tails and the return of stored gold tailings.
Production was interrupted in June by a severe weather event which destroyed roads and infrastructure preventing access to the project.
KBL returned to production at pre- interruption rates by the final week of July. The re-start has also enabled KBL to recommencing revenue generation through the steady supply of high-grade sulphide ore (gold-silver) to the Mineral Hill processing plant.
Despite the June quarter being below forecast, results for April and May were encouraging and indicative of the processing capability, said managing director, Greg Starr. As the plant is returned to nameplate capacity we expect a continuance of strong production targeting some 6,980 ounces gold production over the current quarter.
With a return to high grade Pearse, KBL has been able to maximise the productive output of the processing plant with a return to production of gold-silver concentrate in addition to bullion.
More than 650 tonnes of concentrate were produced for sale by the end of July.
Since resuming, plant through puts are increasing toward a steady state of 35-40 tonnes per hour and costs have continued to stabilise.
