Millennium Minerals declares commercial production at Nullagine
THE DRILL SERGEANT: Millennium Minerals (ASX: MOY) has declared Commercial Production at the company’s Nullagine gold project in the East Pilbara District of Western Australia, signalling the completion of commissioning and operational ramp‐up of the mine and processing plant.
The company stated the overall performance of the mine since November 2012 has demonstrated the mine is capable of operating above its design throughput.
The company also pointed out its operating costs are within its previously released estimates.
Millennium was keen to share data of January 2013 production, which shows its pit mining operations established a new monthly record for total volume mined and hauled at 212,000 billion cubic metres.
Gold poured in January 2013 amounted to 7,200 ounces, which is also a new gold output record for the project.
Millennium is now targeting an expansion from the present design throughput of 1.5 million tonnes per annum (Mtpa) to at least 1.7Mtpa for the FY2013.
“To achieve this will require a modest increase in throughput from 189 tonnes per hour to approximately 200 tonnes per hour,” the company explained in its ASX announcement.
“The evaluation process for this production increase has two important components: (i) the project’s viability of sustaining output at this higher level and (ii) assessing the combination of throughput and head grade that will yield the highest economic margin – translating into making best use of our production assets.
“This Future production, cost and cash flow guidance in respect of the 2013 financial year (ending 31 December 2013) will be given at the end of the current quarter.”
Millennium has commenced a drill program with the aim of increasing the Mineral Resource and Ore Reserve base across its tenement portfolio.
Nullagine deposit location plan. Source: Company announcement
RC drilling has commenced at Golden Gate and Golden Eagle and is targeting strike and depth extensions as well as a large number of geochemical anomalies.
At the end of January 2013, 47 reverse circulation drill holes had been completed.
Drilling has been targeting strike extensions at Falcon, G‐Reef, ABCD Reef, Condor and Crow, collectively known as Golden Gate.
Millennium indicated it expected to start receiving assay results soon.