6 Oct 2010 07:00
| AIM: GMA | 6 October 2010 |
GMA Resources plc
("GMA" or the "Company")
Production Update for Q3 2010
·; Gold production up 19% in Q3
·; September production of 3,059 oz of gold, generating record monthly revenues
·; CIL plant achieves an average gold recovery of 92% since commissioning in August 2010
·; Exploration through RC drilling programme continues, with 4,723m drilled in Q3
GMA announces that from 1 July to 30 September 2010, the Amesmessa gold mine in Algeria increased production of gold to 7,259 oz (Q1 2010: 5,732oz, Q2 2010: 6,096) and 1,316oz of silver (Q1 2010: 1,197oz, Q2 2010: 1,205oz), an increase of 19 per cent. and 9.2 per cent. respectively on Q2 production. Detailed production data is set out below.
The Carbon in Leach ("CIL") gold processing plant was commissioned in mid-August 2010. During September, the plant's first full month of production the CIL, coupled with existing heap leach operations, exceeded management's production target of 3,000 oz of gold for the month. Prior to the commissioning of the CIL plant, selective high grade ore was mined and stockpiled with the intent of maximising the efficiency of production.
Waste stripping continued in Veins 9 and 15, where zones of high grade ore have been identified. These zones are intended to become the primary feed for the CIL plant over the coming months. In addition to this, there is a renewed focus in identifying new oxide ore sources for the heap leach operation from outside of the Amesmessa area, in order to expand the Company's production scope.
On the exploration front, the reverse circulation ("RC") drilling program continues, with 4,723m drilled in Q3, giving a total of 5,804m since drilling commenced in June 2010. In total, 2,338 samples are currently in transit to the assay laboratory in Perth, Australia. Drilling is ongoing in Zone II at the Aster anomaly, known as TA 52, which has elevated gold in soils of over 100 ppb for 1km along the strike with an average width of 100m (5 traverses 200m apart). The soil anomaly is open at both ends. Approximately half of the 52 planned holes have been completed. The drilling focus will then move to Bouadjla, a few kilometres north, to drill TA 47 and 48; an area of similar elevated gold in soils as TA 52, however, with a 2km strike.
A preliminary design for the construction of a CIL Gold Processing plant with a capacity of 600,000 to 800,000 tonnes per annum at Amesmessa has been received from an engineering company. Discussions have subsequently progressed with the engineering company, which is now preparing a scope of works to undertake a more detailed engineering design for a similar sized CIL plant. The Board expects that the proposal will be ready for evaluation in late October.
The logistical challenges of getting imported spare parts and consumables to the Amesmessa plant still remains a major hurdle to the Company's operations. In an attempt to reduce the lead time between ordering and receiving goods, the management of ENOR is focussing on utilising local parts and equipment wherever possible and looking to move towards longer term forward purchasing agreements with key suppliers outside of Algeria.
In an attempt to improve gold recovery, a 'wobbler sprinkler system' was trialled during Q3, for the purpose of supplementing the dipper system currently being used to irrigate the heap leach stockpiles. This new system, combined with new pumps due to be installed in Q4 aimed at increasing pump capacity, is expected to substantially increase the current irrigation foot print, with additional volume of solution circulating in the stockpile.
More detailed production data for Q3 2010 is set out in the table below:
|
| Unit | July '10 | Aug '10 | Sept '10 | 3rd Quarter |
| Total Gold Production ENOR | oz | 1,913 | 2,343 | 3,059 | 7,315 |
| Total Silver Production ENOR | oz | 352 | 379 | 585 | 1,316 |
| High Grade Ore Tonnes ex-Mine | mt | 2,820 | 30 | 3,180 | 6,030 |
| High Grade Ore Grade ex-Mine | g/t Au | 14.22 | 10.00 | 11.00 | 12.50 |
| Heap Leach Ore Tonnes ex-Mine* | mt | 41,220 | 51,360 | 41,520 | 134,100 |
| Heap Leach Ore Tonnes ex-Mine | g/t Au | 2.46 | 1.92 | 1.83 | 2.06 |
| Average Grade Mined | g/t Au | 3.21 | 1.92 | 2.48 | 2.51 |
| Waste Tonnes Mined | mt | 280,140 | 275,910 | 321,150 | 877,200 |
| Strip Ratio | 6.36 | 5.37 | 7.18 | 6.35 | |
| Ore Stacked to Heap Leach Pad | mt | 39,281 | 29,446 | 36,099 | 104,826 |
| Heap Leach Grade | g/t Au | 3.02 | 2.46 | 1.78 | 2.44 |
| Ore Processed at CIL | mt | 0 | 1,512 | 3,608 | 5,120 |
| CIL Grade | g/t Au | 0 | 16.53 | 17.92 | 17.51 |
| Average Grade Total Processed Ore | g/t Au | 3.02 | 3.15 | 3.25 | 3.14 |
| Recovery Heap Leach | % | 50% | 70% | 54% | 57% |
| Recovery CIL | % | 0% | 89% | 93% | 92% |
| Total Recovery | % | 50% | 75% | 74% | 66% |
Ken Crichton, Chief Executive of GMA, commented:
"After a very encouraging quarter, our goal remains to deliver consistent gold production of 3,000oz per month from the current heap leach and CIL operations through Q4. Also, equally as important, we should start to receive results from the RC drilling program that will help direct our short term mining plan, but more importantly, give us an insight to the overall potential of the Tirek-Amesmessa Concession. We hope to see a positive impact from the wobbler sprinkler system, which ENOR's management team has worked extremely hard to trial - if our assumptions prove to be correct, the additional fluid circulating in the heap leach stockpiles should help improve recovery."
Enquiries:
| GMA Resources Plc
| Ken Crichton | +20 (0)10766 6118 |
| Merchant Securities Limited (Nomad) | Bidhi Bhoma | +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