Millennium Minerals Rides The Resurgent Gold Wave
Millennium Minerals (ASX: MOY) shares have soared 64% in a little over three weeks to close at $0.018 on Tuesday 23rd July.
Driving the gold producers share price higher is the external factors of a rebounding gold price which is further supported by a falling Australian dollar.
Millennium also delivered a compelling set of production numbers for the June quarter 2013 from the Nullagine Gold Project in Western Australia, which included the sustaining operating costs for the period of $938 per ounce (includes site cash costs, royalties, corporate expenses and site sustaining capital).
The company generated EBITDA of $12.1 million from gold production for the June quarter, as C1 unit cash costs came in below budget for the period at $761 per fine ounce poured, 9% lower than the March quarter ($826 per ounce).
Importantly Nullagine achieved budgeted gold output for the quarter producing 16,441 fine ounces of gold in line with the budget of 16,661 ounces from 19,704 ounces doré. Milled ore tonnage was 373,449 tonnes, up 8% from the previous quarter.
Forward Guidance
Millennium has provided base case gold production planning for FY2013 (December 2013) is indicating an operating forecast at design throughput rates of 1.5 million tonnes milled to yield 78,000 ounces.
The production plan indicates higher gold output in the second half of calendar 2013 arising from commencement of mining at the higher grade Golden Gate deposits. Pre-mining activities have commenced at Golden Gate in preparation for grade control drilling.
ABC and D Reefs will be the focus of mining operations at Golden Gate with ore mining due to commence late in the September quarter.
Ore will be mined and then trucked to the Golden Eagle processing facility for treatment during the December quarter.
The Ore Reserve at ABC and D Reefs has been estimated to be 0.46 million tonnes at 3.4g/t gold for 51,000 ounces contained gold.
Projected C1 unit cash costs for the FY2013 year are forecast at $829 per ounce and sustaining cash costs (including site cash costs, royalties, corporate expenses and site sustaining capital) at $964 per ounce produced.
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