8 Jan 2009 07:00
8 January 2009 AIM: GMA
GMA Resources Plc
("GMA" or "the Company")
Production Update
Output on target for Q4 2008
Production at the Amesmessa gold mine in Algeria increased every month of the final quarter of 2008. Production figures for the quarter were as follows:
October: 1,205 ounces of gold and 233 ounces of silver
November: 1,550 ounces of gold and 293 ounces of silver
December: 2,537 ounces of gold and 465 ounces of silver
These production results are in line with the Board's expectations and reflect the deliveries of commercial quantities of explosives during November and December 2008.
The supply of explosives was the primary factor which depressed production up until December 2008. Production should now increase to commercial production levels over the coming months. Three shipments of 80, 165 and 150 tonnes of explosives were delivered to Amesmessa in November and December and regular monthly shipments are expected during 2009.
Annual production for Amesmessa for 2008 was 21,156 ounces of gold and 3,748 ounces of silver. The reported silver production for August 2008, as announced on 7 October 2008, was 290 ounces. This production figure was incorrect and the correct lower figure of 136 ounces is reflected in the annual figure above.
Douglas Perkins, Chief Executive Officer of GMA, commented:
"The production results at Amesmessa are ramping up as a result of explosives deliveries. We expect this to continue in 2009. We continue to work on supply chain issues and cash flow issues in Algeria however, both are improving with production increases and we expect to reach steady state production and design capacity by the end of the first quarter in 2009. The ore continues to leach well and we are now able to mine more efficiently with the commercial quantities of explosives."
Enquiries:
GMA Resources Plc
Douglas Perkins
+1 514 806 6788
John East & Partners Limited
Bidhi Bhoma / David Worlidge
+44 (0) 20 7628 2200
Notes to Editors:
GMA owns a controlling 52 per cent stake in ENOR spa ("ENOR"), the Algerian based operating company for the Amesmessa project, with the remainder owned by Sonatrach, the Algerian state-owned oil and gas company.
ENOR holds the exploitation authorization to the Tirek-Amesmessa property, an area of some 1,417 km2, located approximately 450km south west of the city of Tamanrasset, in southern Algeria. Amesmessa is an open pit heap leach gold mine located in the extreme south of the permit area. The Tirek gold mine is located in the northern third of the exploration permit area, some 60 km north of Amesmessa. Research to date suggests that the Zita Zone, which lies between Tirek and Amesmessa, offers considerable potential for the development of additional prospects amenable to open-pit mining. GMA plans to expand upon resources outside of the major 80km north/south Tirek-Amesmessa fault and other exploration targets on the property.