THE BOURSE WHISPERER: Intermin Resources (ASX: IRC) released an update on recent activities at the company’s 100 per cent-owned Teal gold mine, located near Kalgoorlie-Boulder in Western Australia.
Intermin Resources completed pre-stripping at Teal Stage 2 in the December Quarter 2017, and hass since focused on completion of ore mining from both Stage 1 and Stage 2 of the pit.
The company explained that as the pit progressed to the end of the design life, additional ore was identified within and below the design and was mined out where possible.
In March this year, the final load of ore was hauled to the ROM pad and mine closure activities commenced.
In total, 230,000 tonnes of ore have been mined grading 3.2 grams per tonne for 23,500 ounces mined within a total volume of 2.21 million bank cubic metres (bcm).
The company said this compared favourably with the 203,000 tonnes grading 3.2g/t gold for 20,700 ounces mined within a total volume of 2.11 million bcm estimated in the Feasibility Studies for both stages.
Based on the additional tonnage, expected grade and improved recovery from the operation, Intermin Resources has increased production guidance to 21,000 to 22,000 ounces with an All In Cost of $1,000 to $1,100 per ounce.
Intermin completed a 17-day second ore processing campaign at the one million tonnes per annum Lakewood toll milling facility in February, from which full reconciliations have been compiled with 26,632 dry tonnes of ore milled at a final calculated head grade of 3.5g/t gold.
Plant metallurgical recovery exceeded expectations at 97.2 per cent producing 2,910 fine ounces of gold.
The average gold price received for the campaign was $1,684 per ounce, generating $4.9 million in gross revenue.
Intermin said the final milling campaign will be completed in March 2018 with expected treatment of approximately 50,000 tonnes of ore.
Final production and financial reconciliations are expected in the June Quarter.
“While the project has not been without its challenges, Teal has more than delivered on its promises and it is extremely pleasing to see the mine perform well against Feasibility Study estimates,” Intermin Resources managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.
“The company is now in a strong position to fund an aggressive growth strategy.
“In 2018 this growth strategy means resource growth and new discoveries in one of the most productive goldfields in the world.
“We now look forward to delivering ongoing results from the 55,000 metres drill program underway and believe the key Anthill, Blister Dam and Teal project areas have the potential to deliver a significant step change for the business.”