Norton Gold Fields (ASX: NGF) had a busy six months, exceeding production guidance and opening a new mine near Kalgoorlie.
The Brisbane-based company produced 85,517 ounces of gold for the half year to June 30, an increase of 7-13 per cent on gold production guidance provided in March, it announced today.
The average price received was A$1,402 per ounce, while cost per ounce was A$1,029.
The enterprise open pit mine was opened on May 21. Waste stripping commenced on May 2 and ore production expected in the last quarter.
When it reaches full capacity, the A$110 million mine will supply the bulk of ore to the Paddington Mill and will contribute about 110,000oz per annum to gold production.
Early completion of a ball mill head replacement at the Paddington Mine in mid-June allowed additional production time.
Norton Gold Fields managing director and CEO Dr Dianmin Chen is pleased with the result.
“This is evidence of the company’s stability to deliver challenging
production targets and a reflection of the dedication of our staff to achieve our vision in the current turbulent market,” says Chen.
“With significant capital investment made in the new Enterprise mine and owner mining fleet fully commissioned, we expect further cost reductions in line with our 2013 production guidance announced on March 1.”
NGF is also in the process of a friendly, off-market takeover of Kalgoorlie Mining Company (ASX: KMC).
The news gave the NGF share price a welcome boost this morning and it jumped 8.7 per cent to $0.125 in early trading.
The price has more than halved in the past year, from a high of $0.270.
Gold prices have also rallied today, busting through the $1300 threshold.
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