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  • Vantage Goldfields Increases Gold Production In South Africa 0 comments
    Sep 12, 2013 11:26 PM

    Vantage Goldfields (ASX: VGO) produced record gold production of 2,627 ounces in August 2013 and expects to produce 7,500 ounces in the September quarter, up 30% from the previous quarter.

    This follows recent improvements to the mining layout at its Lily Mine and improved metallurgical recovery at the Taylors mine in South Africa.

    It added that cost savings implemented in June, coupled with the relatively stable price of gold in South African currency terms, have also contributed to improved profitability.

    This has had a positive impact on the company's cash flow.

    The company also noted that labour relations with the Association of Mineworkers and Construction Union remained good despite the unsettled labour situation in South Africa and that no labour unrest has been experienced.

    It had reached a wage settlement earlier this year that was implemented in July without incident.

    Cash was bolstered in August by its securing a US$500,000 Convertible Loan from Finance Worldwide to further develop its Lily and Taylors gold mines.

    It added that its cash position is expected to remain stable for the remainder of 2013.

    Lily and Taylors

    The company had previously noted in its June quarterly that its new mining strategy at the Lily Mine involved re-engineering the mining layout to improve grade control, blasting efficiencies, cost reductions and greater mining flexibility.

    This has resulted in increased grades and more selective stope tonnages that have clearly improved gold production in the current quarter.

    The mine is still in an expansionary phase and further capital expenditure, mainly for additional trackless mining equipment, is required to bring it full production.

    Vantage targets to produce 35,000 ounces of gold per annum from the Lily underground operation for at least 11 years.

    A move to direct cyanidation to recover gold from Taylors Mine - part of the Barbrook Complex - rather than blending Taylors' concentrates into the Lily Mine's processing circuit was also made in May to address lower recovered grades.

    The Barbrook Stage 2 expansion will be a major expansion targeting about 70,000 ounces per annum of gold production.

    A review of processing options was completed in 2011, and this has progressed to the commencement of a Bankable Feasibility Study, scheduled to be completed in the fourth quarter of 2013.

    Vantage's interest in Lily is currently 85%, though this will be reduced to 74% by 2014. It has a 74% interest in Barbrook-Taylor.

    Analysis

    Vantage Goldfield's move to increase gold production at its Lily and Taylor operations have borne fruit with the record production of 2,627 ounces in August and expected improvement in September quarter output.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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