Perth, Apr 24, 2006 (ABN Newswire) - Resolute Mining (ASX: RSG) announces report on activities for the quarter ending 31st March 2006.
The following is a summary of the quarterly report.
OPERATIONS
Quarterly Production
- Gold production for the quarter of 74,085 (74,477) ounces of gold was achieved at a cash cost of A$496 per ounce (A$500).
- Production at Golden Pride in Tanzania for the quarter was 36,569 (34,351) ounces of gold at a cash cost of A$360 (A$428) (US$265:US$319) per ounce.
- Gold production at Ravenswood generated 37,516 (40,126) ounces at a cash cost of A$628 (A$562) per ounce.
DEVELOPMENT
Syama
- Approval of an investment of up to US$120 million for the redevelopment of the 6 million ounce Syama gold mine in Mali.
Mt Wright
- Mt Wright development approved and site works commenced. Golden Pride Reserve Increase and Mine Life Extension
- During the quarter a major increase in the reserve base at Golden Pride Mine in Tanzania was announced that will see production from this mine continue for at least eight years.
EXPLORATION
- Exploration activities continued at a high level during the quarter, with exploration drilling in progress in Tanzania, Ghana, Mali and Ravenswood.
- At Golden Pride the new lodes delineated on the southern wall have been extended to the west with some excellent intercepts including 9m @ 13.48g/t Au from 74m and 18m @ 10.95g/t Au from 105m, 30m @ 3.28g/t Au from 6m and 15m @ 6.52g/t Au from 123m.
- West of Golden Pride reconnaissance reverse circulation drilling on the old Canuck Gold Mine returned encouraging results including 7m @ 19.21g/t Au from 95m and 5m @ 12.75g/t Au from 26m.
- At Nyakafuru, follow up drilling on the Leeuwin and Grange prospects continued to return encouraging results including 17m @ 3.83g/t Au from 27m and 23m @ 2.41g/t Au from 45m.
- In Ghana reconnaissance wide spaced shallow reverse circulation drilling over an extended strike on the Weststar/Blue River prospects returned intersections of up to 20m @ 1.59g/t Au from 24m and 20m @ 1.72g/t Au from 40m.
- In Mali further encouraging results were reported from the Tabakoroni Prospect including 8m @ 27.30g/t Au from 96m, 23m @ 7.90 g/t Au from 70m, 15m @ 7.60 g/t Au from 82m, 16m @ 4.20 g/t Au from 39m, 14m @ 6.20 g/t Au from 65m, 12m @ 7.80 g/t Au from 91m and 6m @ 9.05 g/t Au from 60m. The latest results confirm that mineralisation extends over a total of more than 1,600m of strike, containing multiple high grade shoots.
- At Ravenswood diamond drilling adjacent to the Buck Reef West underground mine has confirmed the presence of a Buck Reef Style breccia zone extending to the east (towards the Sarsfield pit), with intercepts reported including 18m @ 5.23g/t Au from 387m.
CORPORATE
- Group cash and bullion at the end of the quarter was A$15m (A$15).
- Gross cash flow from operations for the quarter was A$14m (A$3m).
- Debt reduced to A$25.9m.
- Market value of listed investments increased by over A$100 million during the quarter to A$162 million at 31 March 2006.
PRODUCTION SUMMARY
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Ore Ore Head Recov Plant Total Cash *Total
Mined Milled Grade (%) Avail. Prod. Cost Cost
(t) (t) (g/t) (%) (oz AU) A$/oz A$/oz
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Golden Pride
Mar Qtr 566,922 700,441 1.74 93.4 90.7 36,569 360 435
Dec Qtr 662,286 784,539 1.44 94.3 94.7 34,351 428 504
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Ravenswood
Mar Qtr 1,311,698 1,290,632 1.08 83.8 95.1 37,516 628 695
Dec Qtr 1,401,019 1,219,298 1.20 85.0 97.1 40,126 562 638
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Total
Mar Qtr 1,878,620 1,991,073 1.31 88.3 92.9 74,085 496 566
Dec Qtr 2,063,305 2,003,837 1.30 89.1 95.4 74,477 500 576
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*Total Cost includes cash costs, depreciation and amortisation, royalties and in-country operational support costs.
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