HGM.L Share News (HGM)

(ShareCast News) - Total gold production was up at Highland Gold in 2015, though lower than expected grades resulted in some disappointments, according to a trading update from the company on Wednesday.The AIM-traded mining firm saw total production at Mnogovershinnoye, Novoshirokinskoye and Belaya Gora for the full-year to 31 December of 262,495 ounces of gold and gold equivalents, a 1.4% increase over 2014.Its average realised gold price during the year was $1,154 (£806.87) per ounce.The company's board did see "lower than expected grades at Belaya Gora" in the second half, resulting in a shortfall there against its full-year production guidance of 270,000 ounces.Its processing plant operations at Belaya Gora were continuing, "with recovery rates averaging 74.9% in the second half, a 13% increase year-on-year", the board said.It outlined that phase two of plant construction and equipment installation was completed during the period, and the design of the solid waste landfill was approved by regulatory and environmental agencies.Highland Gold's Novoshirokinskoye operation saw "steady performance in 2015, with ore processing rising to 691,284 tonnes for the full year, a 19% increase from 582,822 in 2014".The board said a pre-feasibility study had been initiated on major operational upgrades to potentially nearly double the current mine production and mill throughput.In other areas, geotechnical studies, pre-design surveys and calculations for the selection of a processing flowsheet was completed at Kekura, and the company began the preparation of a scoping study for the Baley Ore Cluster Projects."Total production of gold and gold equivalents in 2016 is expected to remain stable at 255,000-265,000 ounces as the natural decline at Mnogovershinnoye is offset by improvements at Belaya Gora in the second half", the board concluded.