Kemin Resources Regulatory News (KEM)

16 Feb 2005 09:17

GMA Resources PLC16 February 2005 GMA Resources Plc Quarterly Report Fourth Quarter ended 31 December 2004 GMA Resources Plc, the gold mining company, announces its quarterly reportoutlining operating and development activities for the fourth quarter ended 31December 2004. Highlights > Operations • Gold production was 5,350 ounces for the quarter • Annual production of 19,197 ounces achieved, the highest on record for GMA • The operations achieved the NOSA 3 Star Safety Award > Development • Planned diamond drilling programme completed • Database validation being completed prior to finalising resource estimation • Preliminary resource modelling and mine design commenced on main veins at Amesmessa • Process and engineering design for a 300,000 tpa plant at Amesmessa finalised • Capital and operating estimates being finalised 1.0 Summary GMA Resources Plc, the gold mining company, owns a 52% controlling interest inthe Tirek Gold mine and exploration project in Algeria. The company's shares arelisted on the AIM market of the London Stock Exchange under the code GMA. The Board's strategy is to complete a development plan for the substantial Tirekand Amesmessa gold deposits with a view to significantly expanding the existinggold mining operation. A major exploration drilling programme commenced inOctober 2003 and 20,000 metres of RC drilling and 3,300 metres of diamonddrilling have been completed. The contract to complete the bankable feasibilitystudy of a 300,000 tpa plant located at Amesmessa was awarded to GRD Minproc on31 May 2004. The geology and mining sections will be prepared by RSG Globalunder contract to GRD Minproc. Included in GRD Minproc's scope of work is thecompletion of an Engineering Estimate for the possible expansion of the TirekPlant to approximately 200,000 tpa. During the quarter the company continued to operate and optimise the existingpilot plant operation at the Tirek minesite. Gold production for the quarter was5,350 ounces. Gold production, while lower than the previous quarter, continuedthe trend of improved production levels compared with previous years. Recordannual production was achieved despite significant plant downtime due to thegenerator set failures in the second quarter of 2004. Gold sales for the quarter totalled 5,658 ounces. The average sale pricereceived was US$475.87 per ounce. The spot price for gold traded in a range ofapproximately US$410 to US$455 per ounce over the December 2004 quarter. Theprice achieved reflects the unique position and price premium that the Companyhas for gold sales in Algeria. 2.0 Operations 2.1. Safety & Environment. • There were 2 Lost Time Injuries during the fourth quarter 2004. • There were no environmental incidents. • The Tirek Operation was awarded a NOSA 3 Star Safety award following an independent NOSA audit of the site safety and environmental systems. 2.2 Mining • A total of 12,214 tonnes of ore at a grade of 11.80g/t was mined during the quarter. Waste removal amounted to 396,243 tonnes and total material moved was 408,457 tonnes. • Mine production was lower than the previous quarter due to maintenance downtime on the CAT 365 Excavator. The hydraulic swing motor required repair, and was brought back into service in December. The machines performance will remain restricted until new swing motors are installed. These have been purchased, although not yet delivered to site. • The Blast Hole Drill rigs availability was also lower than planned, and procurement of spare parts is being expedited. An operating and maintenance training programme has been arranged and should be implemented in January. This, coupled with the arrival of the spare parts, should resolve the low drilling productivity that has resulted in lower than budgeted waste removal. 2.3 Processing • The plant milled a total of 13,991 tonnes at a grade of 12.10 g/t during the quarter. • Gold production during the quarter was 5,350 ounces.. Gold production for the year was 19,197 ounces; • Mill availability was 81.4%. Plant recovery and throughput rates were 96.7% and 8.4 tph respectively; and • Plant availability was lower than planned due to the failure of the primary crusher drive motor. This was repaired in December. Mill throughput was also restricted at times due to worn mill liners. New liners were delivered to site in December and installed. 3.0 Development 3.1 Exploration The budgeted Diamond drill holes have been completed, with the final holes atTirek being drilled out in November and December 2004. Further holes, inaddition to those originally planned, have been drilled at Amesmessa and Tirek. At Amesmessa it was necessary to drill four extra holes, the purpose of whichwas to twin RC holes and to ensure that the mineralised shear zone identified inthe RC samples was duplicated by core samples. This was successful, withmineralised zones of between 5 and 10 metres being observed. At Tirek, four extra holes were drilled for geotechnical information. Drilling has been briefly suspended and ORGM, the drilling contractor, willreturn in February 2005 to drill some extensional holes between Veins XIV andXVI. 3.2 Projects Resource models and mine plans are currently being finalised by RSG Global, aspart of the feasibility study being managed by GRD Minproc. Validation of the geological databases, particularly that part that relates tothe original ORGM drilling and assaying, has been the main focus for thedevelopment team this quarter. Capital and operating estimates (excluding those for mine development) areexpected to be completed by the end of February 2005. The expert reports required for the Environmental Impact Study (EIS) have beenreceived and a draft of the EIS is now being finalised. 4.0 Outlook The outlook for the March 2005 quarter is for a continuation of the improvedmine production rates. Gold production in the first quarter will be affected by scheduled maintenanceof the filter press, ROM bin and crushing plant chutes along with modificationsto the ROM bin design. 5.0 Key Statistics Key Performance Indicator Units Quarter Ending Quarter Ending Quarter Ending Quarter Ending December 2004 September 2004 June 2004 March 2004 Mine Performance Ore Mined Tonnes 12,214 9,867 11,271 8,153 Grade Au g/t 11.80 10.97 19.39 9.97 Waste Mined Tonnes 396,243 506,962 387,743 264,618 Strip Ratio Waste:Ore 32 51 34 32 Plant Performance Ore Milled Tonnes 13,991 16,223 6,241 15,955 Grade Au g/t 12.10 13.81 12.37 8.68 Gold Poured Oz 5,350 7,101 2,364 4,382 Gold Recovery % 96.7 96.6 96.7 97.3 Exploration RC Drilling metres 0 0 0 6,081 Diamond Drilling metres 923 346 869 788 ENDS For further information contact: GMA Resources Tel: + 33 678 636 518Colin Ikin, Chief Executive 4C Communications Tel: + 44 20 7907 4761Carina Corbett This information is provided by RNS The company news service from the London Stock Exchange