Firefinch Ltd (ASX:FFX) has delivered more than 10,000 gold ounces from its ‘Morila the Gorilla’ gold asset in West Mali over the March quarter.
The gold stock met its production guidance and generated 10,874 ounces in the last three months.
Firefinch says its gold production is only set to increase next half as mining kicks off at the N’Tiola deposit and the Morila Super Pit.
Production guidance for the June quarter now stands between 17,000 and 20,000 gold ounces. Although the annual forecast remains unchanged at 100,000 ounces, annualised production rates in the second half are expected to exceed 140,000 ounces.
Looking ahead, Firefinch is targeting approvals for Morila’s Beledjo satellite pits, while it’s already dotted the I’s and crossed the T’s on community and pre-operation activities well ahead of scheduled mining in December this year.
Fully testing Morila's potential
Speaking to gold production to date, Firefinch managing director Michael Anderson said: “After a year in the role as managing director, I am very pleased to report we have delivered on our plan of transitioning from tailings reprocessing to hard rock mining.
“Our quarter one 2022 gold production of 10,874 ounces comfortably met guidance and pleasingly was delivered injury-free.
“We are on the brink of benefitting from the mining of the Morila Super Pit and N’Tiola, both of which have commenced ahead of schedule.
“We are confident to maintain our 2022 production guidance for Morila at 100,000 ounces of gold and it is exciting to look forward to annualised production rates in the second half of 2022 in excess of 140,000 ounces.
“We are also refreshing the life of mine plan and intensifying drilling as we seek to fully test the potential of Morila and its satellite ore bodies.”
Forward guidance
Firefinch expected to produce between 10,000 and 11,5000 gold ounces in 2022’s first quarter, and in the months to come, Morila is forecast to generate:
- Quarter two: 17,000 to 20,000 ounces;
- Quarter three: 30,000 to 35,000 ounces; and
- Quarter four: 36,000 – 40,000 ounces of gold.
The gold stock anticipates an increase in annualised production in the second half of 2022, underpinned by production from the Morila Super Pit, which supports a material uplift in grade.
Other ore sources include the Viper and N’Tiola satellite deposits, while tailings and other sources will be wound down during the second quarter.
The mining of waste and removal of waste dumps at the Morila Super Pit, as well as waste mining at the satellite pits, is ramping up to the rate required to support production from the Morila Super Pit and its satellite pits at the forecast higher rates towards the end of 2022.
Early start at N'Tiola
Firefinch’s annualised production estimates are also higher thanks to mining at the N’Tiola deposit, which began six weeks earlier than expected on March 31.
Mining at N’Tiola is carried out in collaboration with EGTF, a Malian owned and operated business. This contract is valued at more than US$22 million.
The EGTF partnership at Morila commenced on day one of Firefinch’s ownership and EGTF has successfully mined and hauled more than 6 million tonnes of waste and ore to date.
Given its performance over the last 18 months, EGTF has been awarded an additional 12-month contract to undertake mining at the satellite pits.