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Martha gold returns up 44% in quarter with higher 2004 yield forecast
8 December 2004 - Gold production from the Martha gold mine at Waihi rose 44% in the September quarter to 37,600 oz compared with the same period of 2003, the US-owned Newmont Mining Corporation has reported.
Newmont, the world’s largest gold producer, also says that gold sales from Martha for the full year to December 2004 are expected to rise to approximately 120,000 oz from the 108,900 oz sold in 2003.
The higher gold sales in the September quarter reflected a 54% increase in ore grades, partially offset by a 5% lower recovery rate. Cash costs of US$206 an oz were 5% lower as a result of the higher gold production.
Total cash costs for the full 12 months are expected to be about US$210 an oz.
The Martha open pit operations are scheduled to conclude in 2006 based on current reserves of 760,000 oz at year-end 2003.
The Favona underground mine decline near Waihi was commenced this month in time to allow for a smooth transition from open pit mining at Martha to underground production in 2006.
Access to underground drill platforms for development drilling is expected by early 2005.
At December 2003 Favona held 350,000 oz in reserves. Exploration in 2005 is expected to result in a significant increase in reserves.
Newmont also said that drilling in early 2004 had intercepted the significantly mineralised Amaranth and Trio veins which lie between the Martha and Favona veins.
Elsewhere in the district exploration to target other underground high-grade veins is underway.
At a minerals industry conference in Nelson recently Adriaan Van Kersen, general manager of Newmont Waihi Gold, said drilling in the Union Hill area near Martha mine, produced some very encouraging results.
He said Newmont was currently exploring the Waihi district under eight exploration permits totalling approximately 6300ha.
A new exploration permit EP 40713 was issued this month to Welcome Gold Mines, a Newmont subsidiary, for a 1447 hectare area of Maori land in the Coromandel know as the Pakirarahi 1C block in the Tairua survey district.
Mr Van Kersen told the Nelson conference that Newmont’s interest in the Waihi area is closely related to its exploration potential which was under-explored.
“The renewed emphasis on exploration will see an intensive effort over the next few years”, he said.
