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15 Jul 2011 07:00
AIM: GMA | 15 July 2011 |
GMA Resources plc
("GMA" or the "Company")
Production Update for Q2 2011
GMA announces an update on its gold and silver production for the second quarter of 2011 at the Amesmessa Gold Mine within the Tirek - Amesmessa Concession in South West Algeria.
Key Points
·; Total gold production for Q2 2011 of 2,369 oz.
·; Adverse increase of 53% in strip ratio from Q1 in addition to worsening gold grades drove up cash costs significantly.
·; Non-availability of critical parts and consequent maintenance shut downs impact production.
Production Update
GMA announces that from 1 April to 30 June 2011, the Amesmessa gold mine in Algeria produced 2,368.9 oz of gold (Q1 2011: 3,285 oz) and 516.9 oz of silver (Q1 2011: 785oz).
As previously reported, falling gold grades in the last 18 months of both high grade and heap leach ore are the major contributing factors to the falling gold production at Amesmessa. This was further impacted by an extended shutdown of the Amesmessa crusher for maintenance in June 2011, in addition to the continuing delivery delay for critical parts for the ball mill, which is required to operate the CIL plant at Amesmessa.
Despite the falling gold grades, there has been an increase in mining production, resulting from the hire of an additional four excavators and four trucks There was however a significant increase in the strip ratio in Q2 reflecting the deepening of the existing mining areas. The strip ratio averaged 15.78 in Q2 versus 10.3 in Q1.
More detailed production data for Q2 2011 is set out in Table 1 below:
Table 1- Production April to June 2011
Parameters | Unit | Apr 11 | May 11 | June 11 | Q2 |
High Grade Ore Tonnes ex-Mine | dmt | 395 | 1,080 | 225 | 1,700 |
High Grade Ore Grade ex-Mine | g/t Au | 8.59 | 8.64 | 8.00 | 8.54 |
Heap Leach Ore Tonnes ex-Mine | dmt | 18,038 | 17,685 | 23,520 | 59,243 |
Heap Leach Ore ex-Mine | g/t Au | 1.64 | 2.50 | 1.60 | 1.88 |
Waste Tonnes Mined | dmt | 248,205 | 361,245 | 352,530 | 961,980 |
Total Mined Ex-Pit | dmt | 266,638 | 380,010 | 376,275 | 1,022,923 |
Total Mined Volume Ex-Pit | BCM | 98,755 | 140,744 | 139,361 | 378,860 |
Strip Ratio | 13.47 | 19.25 | 14.85 | 15.78 | |
Ore Processed CIL Plant | dmt | 84 | 0 | 0 | 84 |
Ore Grade CIL Process Plant Feed | g/t Au | 1.96 | 0 | 0 | 1.96 |
Ore Grade CIL Process Plant Tails | g/t Ag | 0.35 | 0 | 0 | 0.35 |
Gold Recovery CIL Process | % | 82.38 | 0 | 0 | 82.38 |
Ore Crushed | dmt | 31,497 | 33,123 | 18,918 | 83,539 |
Ore Stacked to Heap Leach Pad | dmt | 32,158 | 32,973 | 18,918 | 84,049 |
Crushed Ore Grade | g/t Au | 1.72 | 1.70 | 2.22 | 1.83 |
Stacked Ore Grade | g/t Au | 1.72 | 1.66 | 2.22 | 1.81 |
Enquiries:
GMA Resources Plc
| Ken Crichton | +20 (0)10766 6118 |
Merchant Securities Limited (Nomad) | David Worlidge | +44 (0) 20 7628 2200 |
Notes to Editors:
GMA owns a controlling 52% stake in ENOR spa ("ENOR"), the Algerian based operating company for the Tirek-Amesmessa project, with the remainder owned by Sonatrach, the Algerian state-owned oil and gas company.
ENOR holds the exploitation authorisation to the Tirek-Amesmessa property, an area of some 1,417 km2, located approximately 450km south west of the city, Tamanrasset, in southern Algeria. Amesmessa is an open pit heap leach gold mine located in the extreme south of the permit area. The now closed Tirek mine site is located centrally 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 quickly expand upon resources outside of the major 80km Tirek-Amesmessa fault north/south of the concession.
GMA's shares are traded on the AIM market of the London Stock Exchange (AIM: GMA).
For further information on the Company, please visit: www.gmaresources.co.uk
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