admin
Business Reporter
FREDA Rebecca Gold Mine, a subsidiary of Alternative Investment Market-listed Mwana Africa Plc, recorded a 37 percent increase in gold output in the full year to March 2013. In a statement accompanying the group’s financial results, Mwana Africa said Freda Rebecca had since grown to become the country’s single biggest gold producing mine. Mwana holds 85 percent shareholding in Freda.
During the year Freda Rebecca sold 65 350 ounces of gold at an average price of US$1 650 per ounce as well as by-products, generating revenue of US$108,1 million. The out-turn compares extremely well with last year’s performance over the same period when output came in at 47 770oz, for US$1 664/oz, with revenue of US$79,8 million.
The Zimbabwean entity single handedly leveraged the multi-commodity group, which reported turnover for the year of US$109,1 million and profit from operating activities before impairments for the year of US$11,6 million.
The group, however, suffered a US$43,5 million loss after writing off US$43,7 million non-current assets of its 77 percent owned other Zimbabwe subsidiary, Bindura Nickel Corporation, which is facing funding constraints.
“Average quarterly production for the financial period was 16 338oz of gold and the highest level of quarterly gold production was 18 350oz, achieved in the quarter to September 2012.
“A total of 12 510oz of gold was sold in the quarter to March 2013 despite decreased volumes being processed due to the leach tank failure in February 2013,” Mwana said.
The group said 1 043 764 tonnes of ore were mined from 950 857t while 958 968t were milled against 893 145t in 2012.
Ore grade improved from 2,28 grammes per tonne in 2012 to 2,64g/t in the comparative period this year while gold recovery increased from 75 percent to 81 percent. During the year progress was made on the evaluation of the economic potential of Freda Rebecca’s tailings dumps including commencement of construction of a pilot plant.
The objective of the pilot scale test plant is to prove that gold can be recovered economically from the tailings with little reprocessing and low mining and handling costs.
“An auguring programme over the dumps will produce a JORC compliant mineral resource that we believe has the potential to add significantly to Freda Rebecca gold production.”
Work continues to optimise the processing plant, with the focus on increasing plant throughput and recovery improvement. Consultants were engaged in the June 12 quarter to assist management with the correct configuration of power draw, milling rates and grinds in the milling circuit.
Online Reporter