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(Sharecast News) - Silver and gold miner Hochschild Mining announced a major discovery at its Pallancata deposit in Southern Peru on Wednesday and said it was on course to meet full-year production after its third quarter turned out to be the strongest quarter so far this year.
Hochschild said it delivered attributable production of 94,466 gold equivalent ounces and 6.8m silver equivalent ounces, representing a 9% jump on the second quarter of the year, as it hailed a "strong period" at the Inmaculada mine.
Overall, year-to-date attributable production was 261,173 gold equivalent ounces or 18.8m silver equivalent ounces and Hochschild said it remains on track to meet its 2022 production target of between 360,00 and 375,000 gold equivalent ounces and 26.0 to 27.0m silver equivalent ounces.
The company continues to expects its all-in sustaining cost for 2022 to be in line with guidance of between $1,330 and $1,370 per gold equivalent ounce (or $18.5 and $19.0 per silver equivalent ounce).
Chief executive Ignacio Bustamante said: "Operationally, the third quarter was our strongest yet in 2022 and we expect to meet both our full year production and our cost targets. We have also recently completed our submission in response to the Peruvian government's follow-up comments on Inmaculada's Modified Environmental Impact Assessment and currently expect a final decision before the year-end.
"I am also delighted to announce a major discovery at our Pallancata deposit which, although just outside the existing permitted area, is expected to ensure the medium to long-term future of the mine. We are aiming to announce a preliminary Inferred resource in the next few weeks and will make a decision on the operation's short-term future in 2023.
"Finally, we have made further solid progress at our Mara Rosa project in Brazil where we have reached 16% completion and remain on schedule and on budget with all key infrastructure, procurement and construction targets."
