Crescent produces sturdy September

THE BOURSE WHISPERER: Australian gold producer Crescent Gold completed a solid September quarter by producing 21,915 ounces of gold to hit its market guidance from its operations at the Laverton gold project.

Production commenced in the September Quarter from the Mary Mac Hill deposit, which has a probable reserve of 306,000 tonnes at 1.8 grams per tonne for 18,000 ounces of gold and continued at the recently developed Fish pit with a probable reserve of 292,000 tonnes at 3.5 grams per tonne for 33,000 ounces of gold.

Once Crescent had commenced production at Mary Mac Hill it accelerated the Fish operation, to process 504,288 tonnes of ore at an average grade of 1.5 grams per tonne over a 39 day campaign at Barrick Granny Smith under its Ore Purchasing Agreement.

It achieved an average gold price of $1,660 to deliver net revenue of $36.6 million.

“This is an outstanding result reflecting the great work done by the operating team in the effective development of our new open pit operations at both Mary Mac Hill and Fish,” Crescent Gold managing director Mark Tory said in the company’s announcement to the Australian Securities Exchange.
“Both Mary Mac and the newly developed Fish operations are now in full production mode to the extent that we already have 300,000 tonnes of ore stockpiled at Barrick Granny Smith in preparation for the December quarter processing campaign.”
The December campaign, or Campaign 9 as it is known, is planned to run for 32 days.

Crescent has forecast that between 17,000 and 19,000 ounces of gold will be produced during this time.

The results are all good news for Focus Minerals, which completed an off-market takeover of Crescent Gold earlier this month, achieving 82.5 per cent shareholder acceptance.

Focus Minerals chief executive officer Campbell Baird said Crescent had delivered an outstanding Quarter, which had laid the foundation for strong production in the coming December and March Quarters.

“This has been an excellent achievement and the planning is well advanced for subsequent campaigns,” Baird said in the ASX announcement.

By the end of October Crescent said a team will have mobilised a fourth digging fleet to commence mining at the Apollo deposit, which will provide a third separate ore source in the lead up to the commencement of campaign 10 starting in early 2012.

“Apollo is a really exciting area for future production growth with a number of targets running to the north and south through the Chatterbox shear which we expect to become a major future source of production for the group,” Baird said.

Crescent announced a maiden 54,000 ounce proved and probable reserve at Apollo earlier in the year.

The Apollo pit is currently planned to be up to 1.5 kilometres long and is situated on the Chatterbox shear zone some 7km to the west of the Laverton.

Crescent also holds tenements along approximately 30km of the Chatterbox shear zone.