Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) has said all-in sustaining costs this year will be lower than initially thought despite challenges over the third quarter, including heavy rain at Segilola.
Production costs of an ounce of gold are expected to average between US$800 and US$900 over the full year, the company said on Wednesday.
This was against guidance for US$900 to US$1,000 previously, with the drop reflecting cost-saving efforts alongside a reduction in forecasted production.
Production guidance was trimmed to 85,000 ounces of gold, from 90,000, after extreme rainfall at Segilola, Nigeria in September affected operations.
Thor added efforts to pump water out of the pit had been completed as of today.
Over the third quarter, Thor reported a total of 20,110 ounces of gold was poured at Segilola from 201,958 tonnes milled at an average grade of 3.22 grams per tonne.
Ore stockpiles increased by 2,094 ounces to 39,934 Thor added, while US$4 million of a senior debt facility was paid off leaving a balance of US$3.9 million.
Chief executive Segun Lawson said the company was “pleased to have poured over 20,000 ounces of gold in the period whilst further reducing [...] all-in sustaining cost guidance for the year”.
He added the company was working with authorities to resolve “unfounded accusations” by the Osun State government relating to tax and environmental practices and looked forward “to a full resolution by the end of the year”.