The company holds an 18.5% interest in the mine through PNG-based
First-quarter production was hampered by several factors, including wet weather, lack of autoclave availability, and warranty work on two excavators.
The mine’s production target for 1999 has consequently been reduced by 100,000 oz., to 600,000 oz.
Production in the first quarter of 1999 totalled 128,329 oz. gold at a total cash cost of US$227 per oz., compared with 127,411 oz. at US$306 per oz. in the fourth quarter of 1998. About 1.5 million tonnes of ore were mined and 603,000 tonnes were processed, with the mill head grade averaging 7.24 grams gold per tonne. By comparison, the previous quarter saw 2.2 million tonnes mined and 553,000 tonnes processed at 7.32 grams gold.
Gold recovery is pegged at 94.7%, compared with 95.8% a year ago, and an intermediate stockpile has been set up to provide better control of the head grade.
Lihir sold 127,146 oz. gold at an average price of US$342 per oz. The company hedged all its forecast production at an average price of US$362 per oz.
Most of the ore at Lihir is refractory sulphide ore, which must be oxidized before the gold can be leached by cyanidation. Pressure oxidation technology is used to treat the refractory ore. An oxygen plant is being commissioned, as is a small-scale flotation plant. As a result, gold production is expected to increase in the second half of 1999.
In May, a prefeasibility study will begin exploring ways to expand the Lihir operation.
Stakeholders in Lihir Gold include
The open-pit mine is managed by a subsidiary of Rio Tinto under a long-term contract.
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