Alacer boosts production and stock rises

Alacer Gold (ASR-T) managed to wring more production out of two of its mines and in doing so made up for disappointing results from another.

The company announced second quarter mine production results for its operations in Turkey and Australia came in at 106,226 oz. or 95,984 attributable ounces. That amount represents a 6% increase over first quarter production of 100,290 oz.

The key driver behind the increase was the company’s Çöpler mine in Turkey where gold production for the period was up 15% from the previous quarter to 51,212 oz. or 40,970 attributable ounces.

That boost in production came thanks to the relocation of the old Çöpler village, which allowed the company to ramp-up in mining of the Marble and Main open pits.

Çöpler also benefitted from the release of gold from ore stacked on the leach pads during a harsh winter.

There was more good news from the company’s Higginsville mine in Australia where gold production was up 6% to 35,227 ounces for the quarter thanks to increased plant throughput and ore sourced from three mines displacing the processing of low-grade ore stockpiles.

Alacer says production at Higginsville should increase over the course of the year as Chalice begins to ramp up over the coming months.

Chalice is an underground mine and its development proceeded ahead of schedule, with the initial development ore from the Atlas Lode delivered to the Higginsville treatment plant in the middle of June.

It wasn’t all good news, however, as gold production from the South Kalgoorlie operation in Australia was down 12% to 19,787 oz. after heavy rains made transporting ore to the Jubilee plant from both the Frog’s Leg underground mine and the Triumph open difficult.

Alacer kept its guidance for the year at between 435,000 and 450,000 oz. or 396,000 to 410,000 ounces on an attributable basis.

Alacer has an 80% stake in the Çöpler Gold Mine, Higginsville is wholly owned and the company has a 100% stake in the South Kalgoorlie operation, except for a 49% interest in the Frog’s Legs mine.

In Toronto on July 24 Alacer shares moved up with the increase in production as its stock was up 8% or 41¢ to $5.61 on 618,000 shares traded.