Resolute Mining Ltd’s (ASX:RSG) gold production from the Syama operations in Mali increased by more than 50% to 84,552 ounces in the March 2019 quarter, representing a site record for quarterly output.
The company also produced 13,554 ounces of gold at its Ravenswood gold mine in Queensland.
Importantly, Resolute’s total quarterly gold production of 98,105 ounces was 24,414 ounces higher than the December 2018 quarter.
Strong operating performance and cash flow generation enabled Resolute to continue to invest in growth activities without further debt drawdowns during the quarter.
The key driver of the positive quarterly performance was the high grade and above budget recoveries achieved from Resolute’s new mine at Tabakoroni, 35 kilometres south of the Syama Underground Mine.
A decision to accelerate mining at the Syama satellite operation has resulted in above budget mining rates which has provided high grade ore to the Syama oxide mill and allowed for the creation of a significant oxide ore stockpile.
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Syama oxide operations produced a record 71,186 ounces for the March 2019 quarter and sulphide operations produced 13,336 ounces during the same period.
Strong performance from the oxide operations has supported a decision to prioritise infrastructure, development, and the automation implementation program at the Syama Underground Mine during the quarter.
The focus on development has resulted in a more modest increase in underground ore production. Underground ore mined increased 45% to 244,396 tonnes.
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Resolute managing director and CEO John Welborn said: “Syama is becoming the robust, flexible, high production, low cost gold mine we have envisaged.
“Syama will be a powerhouse of gold production for Resolute for many years to come.
“Underground ore production will continue to ramp up.
“Importantly we have provided the team additional time to optimise and commission the most advanced underground mining automation system in the world."