PRODUCTION at the Niuminco Group-operated Edie Creek Mine was down in the June quarter, but strong prior performance has left the group in a good position.
Niuminco produced 164.5 ounces of gold and 134.5 ounces of silver during the quarter, leading it to sales of A$237,000 for the period.
Gold production and sales were down 59 per cent in June compared to the March quarter, when 402.7 ounces of gold were produced and A$608,000 generated in sales.
“This was the result of a number of adverse factors including plant and equipment breakdowns, significant wet weather events and lower grade ore,” the company said.
Yet Niuminco said it had sufficient reserves to cover costs, leaving it with a A$31,000 net operating cash flow shortfall.
Wrapping up the commissioning of a ball mill circuit will help it increase the rate of ore processed daily to over 20 tonnes, from the current six, Niuminco said.
“This, along with the availability of the group’s drill rigs, should enable self-funded exploration drilling at each of Edie Creek, Bolobip and May River over the next six months.”