Rio Narcea Gold Mines pumped out a record 29,336 oz. of gold from its El Valle operation in Spain, during May, more than twice the previous monthly production record.
The company expects the record-setting pace to run though the second quarter with production for the three-month period pegged at 55,000 oz.
The good news emanates from the high-grade Charnela zone, where mining began in March. Grades have exceeded expectations and the blending of Charnela’s ore with other lower grade ore has increased plant feed grades to 13 grams gold per tonne. Plant recovery has averaged more than 96%.
So far this year, Rio has produced 67,133 oz. of gold. The company now expects full-year production to tally to about 155,000 oz. at cash costs less than US$150 per oz.
During 2001, Rio poured a record 124,363 oz. gold at an estimated cash cost of US$190 per oz. from El Valle. The plant at El Valle ran through 649,142 tonnes of ore with an average head grade of 6.5 grams gold per tonne. The company ended 2001 on a high note with record fourth-quarter production of 34,543 oz., nearly 18% more than a year earlier.
In 2000, the plant processed 723,588 tonnes running 4.6 grams to produce 97,016 oz. gold. Recovery rates between the two periods climbed to 91.2% from 89.7%.
On Monday, the company’s shares were up a dime, or 5.6% at $1.90 in mid-afternoon trade on the Toronto Stock Exchange.
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