No Logie but plenty of Gold

Gold is never far from our centre of attention these days and neither are the companies that are, or are about to be, producing it.

Subiaco-based Crescent Gold recently came in from a 21 day ore processing campaign through Barrick’s 3.8 million tonne per annum Granny Smith gold processing mill.

The ore is being mined by Crescent from its 100% owned Laverton project located north of Kalgoorlie.

It is then delivered to Granny Smith for processing under an Ore Purchasing Agreement where Crescent transports ore to the mill in a 50 day processing cycle per quarter.

The current campaign, which began in April, over 253,000 tonnes of ore has been processed at an average grade of 1.61 grams per tonne with recoveries of 91%.

This has resulted in 11,929 ounces of gold being recovered in the first 21 days of the current cycle putting Crescent on track its forecast quarterly equivalent gold production of 22,000oz for the April 2011 quarter.

“We are very pleased with the production results achieved to date under the current campaign, which is supported by the continuing strength of the $US gold price (above US$1,500oz),” Crescent Gold managing director Mark Tory said in an announcement.

Tory went on to say the company is moving forward with its revised production schedule.

“Initial pit optimisations from the recent drilling results at Apollo indicate five pits are likely to be mined, with average grades of over 2 grams per tonne.

“A reserve update will be made once further work is completed.

“The progressive re-establishment of multiple ore sources at Laverton and increased mining flexibility should see production rates progressively increase over the course of the year, associated with increasing grade profiles.

“Forecast production for the full year to December 2011 is between 80,000 and 90,000 ounces.”

Meanwhile over at Meekatharra Reed Resources continues to yield positive results from its evaluation of its recently acquired Meekatharra gold project.

The company announced significant Resource increases at three deposits within the Project, pit optimisation completed at three deposits and progress towards resumption of mining activities occurring ahead of schedule.
Reworking and remodelling of the existing known ore bodies, has enabled Reed to announce significant increases in both Resources and Reserves at the Meekatharra mining centre, and release the first Reserve Statement at Reedys since mining ceased in 1997.

This comes after only four months of reviewing the assets.

“The Resource and Reserve review is progressing exceptionally well with the geological team now in place and an underground planning engineer due to start in a month,” Reed Resources managing director Christopher Reed said in the announcement.

“A key aspect in de-risking this project is being able to incorporate multiple sources from multiple locations, which is something we have primarily focussed on.

“The increase to the Resource at the Prohibition deposit represents the second milestone (after the Resource increase at the Bluebird deposit) to potentially create another base-load feed for when operations recommence at the Meekatharra Gold Project. In addition, the delineation of the first open pit Reserve since mining ceased at the Reedys deposit in 1997 is very important.

“Once the optimisation of the Prohibition deposit is complete we will be undertaking intense evaluation work at the Mickey Doolan deposit, which hosts over 600,000oz in Resources.”