(Alliance News) - Highland Gold Mining Ltd on Thursday said its production declined in the first half of 2020 amid a reduction in average ore grades.
The Jersey-based miner said its four operating mines produced a total of 61,357 ounces of gold and gold equivalent in the second quarter of 2020, in-line with production forecasts for the quarter, but lower than 70,293 ounces produced a year ago.
For the first half of 2020, total production was 125,347 ounces of gold and gold equivalent, also in-line with internal production targets , but down from 142,254 ounces a year prior.
At Mnogovershinnoye, Highland Gold said the average grade of ore mined in the second quarter increased by 5% year-on-year and the volume of mined ore increased by 4%, however, stockpile blending at the RomPad resulted in a lower head grade at the mill which led to a 6% decline in gold production.
At Novoshirokinskoye, meanwhile, mined grades continued to be lower year-on-year, as expected, due to the accessing of lower grade stopes.
The average realised gold price was USD1,723 per ounce in the second quarter and USD1,655 in the first half of the year.
Highland Gold said its production, sales and supply chain were not materially affected by the Covid-19 pandemic.
The company affirmed its guidance for total production of 290,000 ounces to 300,000 ounces of gold and gold equivalent in 2020.
AIM-listed Highland Gold shares were trading 4.0% higher in London on Thursday at 239.60 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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