Metallon gold output up 18 percent in Q3
LEADING gold producer, Metallon Corporation has seen its output increasing by 18 percent to 26 622 ounces in the third quarter of 2016.
The group, owned by South African businessman Mzi Khumalo operates four gold mining assets — How Mine (the flagship asset), Mazowe Mine, Shamva Mine, and Redwing Mine. In a statement accompanying its unaudited results for the third quarter, the group said:
“The group’s gold production for Q3 2016 was 26 622oz, an 18 percent improvement on the previous quarter (Q2 2016: 22,565). The increase in gold production in the third quarter was due to improvements in performance at How, Mazowe and Redwing mines.” Production for the year to date is 69,680oz. “The Group C1 costs were $737 per ounce and allin-sustaining costs (‘AISC’) were $960 per ounce for Q3 2016.
“This is an improvement of four percent and one percent respectively when compared to Q2 2016 (Q2 2016: C1 cost $764 and $971). C1 costs improved due to increased production and cost efficiencies as a result of new equipment and increased capacity,” said Metallon.
It said AISC were impacted by major repair and renewal work at Shamva Mine as well as expenditure on group expansion projects, which will significantly increase future gold production.
During the period under review, development metres drilled were 4 494, a 14 percent increase on 3 871 metres drilled in the previous quarter.
Group production forecast for 2016 is estimated at 102 000oz due to delays in the construction of the new processing plant at Mazowe Mine and ramp up at Redwing Mine.
The group’s chief executive officer Mr Ken Mekani commented: “Metallon delivered an impressive performance in Q3 2016 with gold production increasing 18 percent and C1 costs reducing four percent compared to the previous quarter.
“These exceptional results are due to improved production across our mines and the result of increased investment in our operations over the last year. This achievement demonstrates the future potential of our assets in Zimbabwe. Metallon is now commissioning the New Processing Plant at Mazowe in the last quarter of this year and will be focused on improving production at Shamva and Redwing mines.
“Future expansion plans are now underway across the Group which will deliver increased growth in 2017 and beyond.”