Teal Gold Mine Operations Update
- Ore mining to date from Teal Stages 1 and 2 of approximately 185,000t of oxide and transitional ore grading 3.25g/t Au for 19,330 ounces mined
- Third party processing totals 155,000 dry tonnes grading 3.26g/t Au and metallurgical recovery of 94.6% for gold production of 15,500 fine ounces to date
- Mining of the remaining ore in the pit (approximately 30,000t grading 3.2g/t Au) is expected to be completed in February
- First ore processing campaign at the 1Mtpa Lakewood toll milling facility completed
- Reconciled production from the first milling campaign totalled 4,550 fine ounces of gold from the treatment of 40,500 dry tonnes of ore grading 3.64g/t Au
- Plant performance was excellent with calculated recoveries exceeding plan at 96%
- Strong Australian dollar gold price averaging $1,672 per ounce generated $7.6 million in gross revenue from the Lakewood campaign
- The second milling campaign commenced on 19 January and will treat approximately 30,000t of ore grading 3.2g/t Au over a 15 day period (see Note 1,2 below)
- The third and final campaign is scheduled to commence 21 February enabling full reconciliations and final cash flows from Teal early in the June Quarter
- Intermin maintains guidance for both Teal Stages 1 and 2 totalling 18 - 20,000 ounces at All In Costs (AIC) of A$1,000 - $1,100 per ounce (see Note 1,2 below)
Commenting on Teal's strong operating performance, Intermin Managing Director Mr Jon Price said:
"It is extremely pleasing to see the first toll milling campaign at Lakewood completed successfully and the mine safely and efficiently moving to completion in the March Quarter. Teal has been a great success to date and has placed the Company in a strong financial position to aggressively pursue our new discovery and resource growth strategy utilising our increasing cash reserves."
With the pre-strip complete at Teal Stage 2 in the December Quarter 2017, the focus to date has been on ore mining from both Stage 1 and Stage 2 of the pit. Strip ratios have decreased considerably to 2:1 with the supergene oxide ore exposed across the entire pit floor in the southern section. In total, 185,000t of ore has been mined grading 3.25g/t for 19,330 ounces with a further 30,000t of oxide and transitional ore estimated to be mined at similar grades through to mine completion in February 2018 (see Note 1,2 below).
Pit wall conditions remain under constant review with a radar monitoring system installed to ensure the safe and efficient completion of the pit.
The first ore processing campaign at the 1Mtpa Lakewood toll milling facility (see Figure 2 in link below) was completed successfully and ran longer than estimated (24 days) ending on 5 January 2018. Full reconciliations have been compiled with 40,528 dry tonnes of ore milled at a final calculated head grade of 3.64g/t. Plant metallurgical recovery exceeded expectations at 96% producing 4,550 fine ounces of gold.
Average gold price received for the campaign was A$1,672 per ounce generating $7.6m in gross revenue.
The second toll milling campaign commenced on 19 January and is estimated to process 30,000t of oxide ore from existing ROM stockpiles with an estimated average mine predicted grade of 3.2g/t Au (see Note 1,2 below).
The third and final campaign is scheduled for late February and will process the remaining oxide and transitional material mined as the pit is completed. It is anticipated that full reconciliations for both campaigns will be completed prior to March Quarter end enabling the release of final production and financial results early in the June Quarter.
Intermin maintains guidance at the combined Teal open pit of 18,000 to 20,000 ounces recovered at an All In Cost (AIC) of A$1,000 to $1,100 per ounce.
The successful Teal open cut has put the Company in a strong financial position to commence the aggressive discovery and Resource growth drilling program in February 2018, to continue Feasibility work as part of the mine development pipeline and pursue further acquisitions at both asset and corporate level.
1 As announced to the ASX on 6 July 2016, 25 July and 6 September 2017
2 See forward looking and cautionary statement on Page 4 and 5
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About Intermin Resources Limited
Intermin Resources Limited (ASX:IRC) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.
Intermin is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.
Intermin has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.
Intermin Resources Limited