Resolute Mining Limited (ASX:RSG) has maintained its ore reserve at 5.8 million ounces of gold and resources at 16.6 million ounces after accounting for mining depletion and additions due to exploration.
The balances from the West African and Australian operations are consistent with the previously published position on June 30, 2018.
Investment in exploration creating value
Resolute managing director John Wellborn said: “Resolute's ore reserves and mineral resources at Syama, Bibiani and Ravenswood underpin our focus on long-life mines and support our ambition to produce more than 500,000 ounces of gold annually.
“Our investment in exploration continues to create value by increasing the range and quality of our mineral resources.”
Class-leading gold inventory
Global ore reserves of 5.8 million ounces are attributed to a 21% increase at Ravenswood in Queensland with open pit reserves at Buck Reef West up to 636,000 ounces as well as a small increase at Bibiana in Ghana.
The Ravenswood result follows an extensive infill drilling program, and an updated resource estimation which resulted in an increase in overall resources and upgrading of inferred resources to the indicated category.
Wellborn said: “Resolute controls six million ounces of gold in ore reserves that are located immediately beneath existing mills and processing plants that we own and operate with strong recoveries."
The global mineral resources of 16.6 million ounces corresponded to incremental resource increases at Buck Reef West and Syama, managed mineral resources at Syama, Ravenswood and Bibiani of 15.2 million ounces of gold, and attributable mineral resources from equity investments of 1.4 million ounces.
Growth in production
Welborn said: “The company is commissioning the worlds first, purpose-built fully automated sublevel cave gold mine at Syama, which will be powered by the world’s largest site-based hybrid power plant.
“The ongoing expansion of our gold reserves and resources, coupled with successful implementation of industry-leading technologies will provide opportunities for growth in production and greater gold value per Resolute share.
“Our currently budgeted investment in exploration in Mali at Tabakoroni and Nafolo is expected to result in further growth in Resolute’s gold reserves and resources.”
READ: Resolute Mining locks in more forward gold sales at high gold prices
The company also forward sold an additional 30,000 ounces of gold at an average price of A$1,887 per ounce in order to secure price certainty for a portion of the revenues from Resolute’s Ravenwood mine.
This adds to the existing 142,000 forward sold ounces through to December 31, 2019, taking the total to 172,000 ounces in month delivers to June 2020.
The move represents 30% of expected gold production over this period and only 3% of the company’s gold reserves.
READ: Resolute increases quarterly gold production by 33%
Resolute produced 73,691 ounces of gold in the December quarter, up 33% on the prior September quarter with the Syama Underground Mine ramp-up on track with production up more than 50% to 56,207 ounces.
The company produced a consistent 17,484 ounces of gold.
- Jessica Cummins