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Fri 22 Sep 2017 07:00
ACACIA MINING PLC - Positive Results from Buzwagi processing trial
PR Newswire
London, September 21
22 September 2017
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Acacia Mining plc
Positive Results from Buzwagi Processing Trial
Acacia is pleased to announce positive results from the processing trial underway at Buzwagi that has been designed to maximise gold doré production from the mine.
Buzwagi currently produces both doré (gold bars) and a gold/copper concentrate (with over 90% of the value of the concentrate being gold). During 2017, gold/copper concentrate has accounted for approximately 65% of Buzwagi's gold production. Since 3 March 2017, however, the mine has been unable to export and sell its concentrate, and as such has only been selling approximately 35% of its gold production, whilst incurring 100% of the cost of production.
The results of the processing trial to date have indicated that Buzwagi should be able to achieve gold recoveries of around 85% through the additional use of reagents in the leaching circuit at limited additional operating costs. All of the recovered gold will be produced in doré form. Buzwagi previously intended to end concentrate production in Q2 2018, but as a result of the trial the mine will solely produce doré from now until the end of its life in 2020.
There are no changes to group production or cost guidance resulting from this processing change, however it will result in Buzwagi being able to sell an additional 8,000-10,000 ounces per month for the remainder of the year. As such, Government royalties and local service levies (which are based on revenue) from Buzwagi are expected to more than double for the remainder of the year due to the increase in sales compared to the last 6 months. We believe that the changes will move the mine from a monthly cashflow negative position to a monthly cashflow positive position, strengthening Acacia's balance sheet and helping to protect thousands of direct and indirect jobs that the Company supports.
ACACIA MINING PLC - Positive Results from Buzwagi processing trial
PR Newswire
London, September 21
22 September 2017
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Acacia Mining plc
Positive Results from Buzwagi Processing Trial
Acacia is pleased to announce positive results from the processing trial underway at Buzwagi that has been designed to maximise gold doré production from the mine.
Buzwagi currently produces both doré (gold bars) and a gold/copper concentrate (with over 90% of the value of the concentrate being gold). During 2017, gold/copper concentrate has accounted for approximately 65% of Buzwagi's gold production. Since 3 March 2017, however, the mine has been unable to export and sell its concentrate, and as such has only been selling approximately 35% of its gold production, whilst incurring 100% of the cost of production.
The results of the processing trial to date have indicated that Buzwagi should be able to achieve gold recoveries of around 85% through the additional use of reagents in the leaching circuit at limited additional operating costs. All of the recovered gold will be produced in doré form. Buzwagi previously intended to end concentrate production in Q2 2018, but as a result of the trial the mine will solely produce doré from now until the end of its life in 2020.
There are no changes to group production or cost guidance resulting from this processing change, however it will result in Buzwagi being able to sell an additional 8,000-10,000 ounces per month for the remainder of the year. As such, Government royalties and local service levies (which are based on revenue) from Buzwagi are expected to more than double for the remainder of the year due to the increase in sales compared to the last 6 months. We believe that the changes will move the mine from a monthly cashflow negative position to a monthly cashflow positive position, strengthening Acacia's balance sheet and helping to protect thousands of direct and indirect jobs that the Company supports.