(Alliance News) - Hochschild Mining PLC on Tuesday said it achieved commercial production at its Mara Rosa gold mine in Brazil on Monday
The gold and silver miner with operations in South America said the Mara Rosa processing plant has operated at an average throughput of around 90% of its name-plate capacity of 7,000 tonnes per day and exceeded 80% average recoveries.
Hochschild Mining said the ramp-up is on schedule to be completed in the first half of 2024, with gold production expected to continue to increase in the third and fourth quarters of 2024.
The Mara Rosa mine is on track to produce between 83,000 to 93,000 ounces of gold this year, Hochschild Mining said.
The company said Brazil represents a "key growth opportunity" as it continues to execute its strategy of increasing production while reducing costs.
"Mara Rosa is delivering production at a significantly lower cost, with excellent potential to provide additional resources which we are targeting through the company's brownfield exploration programme," the company said.
Hochschild Mining also noted recently announcing the securing of an option to acquire 100% of Cerrado Gold's Monte Do Carmo gold project in the state of Tocantins in Brazil.
"This low-cost opportunity will follow the blueprint established at Mara Rosa and, if the option is exercised, MDC will provide the company with a further source of growth, also with a compelling cost profile," the company said.
Chief Executive Officer Eduardo Landin commented: "Achieving commercial production at Mara Rosa is a significant milestone for Hochschild and has been delivered ahead of our end [of first half of] 2024 forecast. This brings a new jurisdiction to the company and provides a springboard for further low-cost growth in Brazil. We are pleased that Mara Rosa is ramping up quickly."
Shares in Hochschild Mining were up 0.6% to 158.75 pence each in London on Tuesday morning.
By Greg Rosenvinge, Alliance News senior reporter
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Hochschild (HOC)