Gold mining report Algeria Q4 2010   Leave a comment

Production Update for Q4 2010(january 12 2011) : GMA announces that from 1 October to 31 December 2010, the Amesmessa gold mine in Algeria produced 4,733 oz of gold (Q3 2010: 7,259 oz) and 1,037 oz of silver (Q3 2010: 1,316 oz).During Q4 2010, there was a marked drop in the overall grade of the mined ore (2.12g/t) when compared to the first nine months of 2010 (3.12 g/t) and all of 2009 (3.55 g/t). This unexpected reduction in the overall grade of mined for the quarter was the major contributing factor to the drop in gold production for the period. Another factor was the depletion of mining areas which had been supplying high grade ore for the CIL processing plant.  Some high grade zones were indentified towards the end of the quarter, allowing for a small improvement in monthly production in December (1,673 oz) from November (1,346 oz).Consequently, more lower grade heap leach ore was required to supplement the lack of high grade ore tonnage to feed the CIL plant. This resulted in the CIL plant processing 11,225 tonnes at only 5.33 g/t with an 82% recovery rate, versus a projected figure of 10,500 tonnes at 11.00 g/t with an 85% recovery rate.The Company’s operations were also affected in Q4 2010 by the re-emergence of supply chain issues beyond its control, resulting in the delay of critical spare parts for the processing circuit, laboratory consumables and heavy equipment fleet. The main impact arising from this delay was that the crushing circuit operated at a reduced capacity to minimise the potential of a major outage (in Q4 2010, 87,706 tonnes were stacked to the heap leach pad at 2.24 g/t and 50% recovery versus projections of 135,000 tonnes at 3.1 g/t and 45% recovery). During 2010, the Company moved towards using Algerian suppliers for key consumables where possible and this shift has led to a reduction in lead times on some items. However the major suppliers of equipment in Algeria also face the same challenges in importing parts into Algeria. The Company is working with its main suppliers to devise mutually beneficial arrangements in a bid to reduce the lead times for parts which are crucial to the Company’s operations

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Posted January 15, 2011 by newworldconsulting in Uncategorized

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