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ASA Resource Group (formerly Mwana Africa) says cost control measures and improved production efficiencies at its operations in Zimbabwe resulted in enhanced production during the third quarter ended December 31 last year. ASA owns and operates Freda Rebecca Gold Mine and Trojan Nickel Mine in Zimbabwe.
In a production update, ASA chief executive Yat Hoi Ning said both operations registered increased production despite a challenging business environment.
“With the ongoing improvements put in place by management, our businesses are slowly but surely showing good progress on all levels,” he said.
During the quarter, Freda Rebecca’s gold sales rose by 2.4 percent to 18,506 ounces with the increase being attributed to improvements in feed grade and recoveries.
Cash costs were reduced by 5.6 percent in the quarter under review to $820 per ounce while all-in sustaining costs were reduced by three percent to $988 per ounce.
“We endeavour to continue with our rolling plan at Freda Rebecca, as it continues to yield positive results,” Yat said.
At Trojan, nickel concentrate production increased 10 percent to 1,584 tons while nickel sales grew 5. 6 percent to 1,577 tons at an average net price of $6,121 per ton.
Improved nickel concentrate production was primarily due to an increase in average head grade and recoveries achieved by mining more of the higher grade ore reserves.
Yat said the New Year also started off well, with results in January promising and encouraging.
“Trojan had a good start in the year. Despite experiencing a lost week at the start of the month our nickel production was close to the target of 644 tonnes, only short by 33 tons in terms of production targets.
“It’s expected that the call for the last quarter will be met due primarily to operational improvements which will result in reduced underground power interruptions, resolution of compressed air shortages and increased access to dump trucks, enhancing the development pace and hence increased access to high grade ore,” he said.
“At Freda Rebecca in January 2016 there was an improvement in gold production during the month resulting in 5,769 ounces being produced (Dec 2015 –5,688 ounces) at an average realised price of $1,109/ ounce.”
Yat said power supply remained a major disruption factor but counter measures were being put in place starting this month.
“In the meantime, our cost control measures shall continue in order to optimise the performance of the mines. I remain confident that this pattern of steady improvement will persist until operating tar targets are reached,” he said. — New Ziana.
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derick.khumalo