PERTH (miningweekly.com) - ASX-listed Evolution Mining has reported gold production of 89 812 oz during the three months to December, following the successful merger between Catalpa Resources and Conquest Mining.
In its first quarterly results report, the merged entity noted that the quarterly production was in line with the 2012 financial guidance, with attributable gold production accounting for 74 095 oz, at a cash cost of A$760/oz.
The merger between Catalpa and Conquest created the fourth-largest ASX-listed gold miner, with a targeted yearly production of between 335 000 oz and 375 000 oz by 2012, of which between 265 000 oz and 300 000 oz would be attributable.
Evolution reported that the Cracow operation, in Queensland, produced some 25 724 oz during the quarter under review, with ore sourced from the Sovereign, Phoenix, Kilenny, North Klondyke, and Royal deposits, and first ore produced at the Roses Pride deposit.
Thzinc processing plant India e Edna May operation, in Western Australia, produced 20 006 oz during the three months to December. Evolution noted that while this was an improvement on the September quarter, production was marginally below guidance as a result of the lower-than-expected mill throughput, which impacted gold production and resulted in higher-than-expected unit cash costs.
Evolution has undertaken a number of initiatives at Edna May to improve the plant performance and to sustainably increase throughput. This included improving plant reliability and efficiency and mine-to-mill optimisation.
It was expected that these improvements would occur within the next 12 months, Evolution said.
At the Mount Rawdon operation, in Queensland, Evolution produced a total of 18 014 oz, of which 12 367 oz was attributable. Gold production at Mount Rawdon was below expectations, owing to lower gold feed grades associated with mining delays, as well as the unscheduled maintenance to the process plant.
Production was expected to improve in the March quarter as mining progresses towards higher-grade ore sources.
Meanwhile, the Pajingo operation, also in Queensland, produced 26 068 oz during the three months to December, which was a significant increase over the previous quarter’s production of 14 049 oz.
Evolution said that production at Pajingo was above expectations owing to a high-grade mill feed sourced from the Sonia underground orebody, as well as from the Janet A openpit, along with the higher mill throughput compared with the previous quarter.
At the Mount Carlton project construction started during the quarter under review, following government mining approval. This Queensland project was expected to produce some 800 000 oz of gold, 17.3-million ounces of silver and 34 000 t of copper over its 12-year life-of-mine.
Commissioning of the process plant was on schedule to start in the December quarter and was anticipated to contribute 95 000 oz of gold equivalent to Evolution’s annual production.
Looking ahead, Evolution noted that production for the quarter ended March was expected to be on par with the levels achieved during December.
Meanwhile, Evolution on Wednesday also reported that MD Bruce McFadzean would step down, as part of the company’s ongoing management restructure following the merger.
Going forward, the responsibilities of MD would now be combined into the executive chairperson’s role, which is currently being filled by Jake Klein.