adminassets while funding to revive it is being sought.
The company, however, said gold output at its local gold mining unit Freda Rebecca had exceeded forecast.
BNC’s assets have been under care and maintenance for the quarter to June 30, but pointed out Trojan Mine remains ready to resume production.
Most mining firms closed down at the height of the economic downturn in 2008 when only Zimplats, Mimosa and Murowa Diamonds remained operational.
“Trojan Mine remains ready to resume production, with all processes, up to tertiary crushers, having been commissioned in the previous financial year. Limited development and drilling continues at Trojan,” said BNC.
Mwana said BNC hoisted 1 694 tonnes of waste and 823 tonnes of ore during the quarter to June while underground development totalled 916 metres.
The Alternative Investment Market-listed mining group said: “The current development is targeting key priority areas included in the restart plan.”
BNC requires US$26 million to restart according to a study by SRK Consulting (UK), which confirmed existence of 3,5 million tonnes of ore, with potential to increase, at an average grade of 1,29 percent per tonne.
But production at gold mining unit Freda Rebecca has hit top gear totalling 8 224 ounces in the three months to June 2011 against a target of 2 500 ounces.
Average monthly production was 2 741 ounces despite some downtime required at Mill 1 for the replacement of the discharge grate and to allow time for the connection of Mill 2 to the common circuit production.
Mill 2 has been commissioned on time and within budget and the ramp up to Phase 11-production target of 50 000 ounces per annum is expected by September.
Mwana said underground ore production is being expanded to meet Phase 11 ramp up and slot cutting of Block 7 had started ahead of Mill 2 start up. While Freda’s Mill 2 has performed beyond
expectations focus this quarter will be on optimising operating parameters for combined milling circuit.
Once this is completed further improvements will be retrofitted to the existing Mill 1 circuit to improve recoveries by optimising mill speed, liner set-up and associated liner wear issues and syncronising the dual circuit.
“The plant recovery rate has improved progressively since operations resumed with an average recovery rate of 83 percent achieved during the last quarter.”
Mwana said mined tonnage stood at 179,2t in June from 154,7t in March and milled volumes rose from 141,7t to 151,2t over the same period.
Mwana received an average gold price of US$1 397 per oz in March and about US$1 517 per oz in the quarter to June as global prices went bullish. Costs per ounce rose from US$958 to US$1 004 during the quarter.
In April, Mwana announced increased mineral resource at Freda, which was verified by SRK Consulting.
Based on a cut-off grade of 1,5g per tonne the indicated mineral increased from one million ounces to 1,67 million ounces. The inferred mineral resource, similarly defined, is now at 0,64 million ounces.
Online Reporter