Alacer Gold (ASR-T) has bulked up its 2012 production guidance by up to 410,000 attributable oz. gold following higher grades at its Copler gold mine in Turkey, despite reporting a weak first quarter.
The company released operating results for its Turkey and Australia operations on April 20, and says the mines churned out 100,290 oz., or 91,377 attributable oz., in a 12% drop over the last period of 2011.
The slip followed difficult weather at the Copler mine. “Low temperatures and abnormally high snow falls during the first half of the quarter adversely impacted the performance of the mining fleet, crushing circuit and leaching rates,” the company explains in a statement.
Production at Copler fell by 23% to 44,564 oz. from 1.7 million tonnes grading 1.69 grams per tonne, compared to the previous quarter’s 57,800 oz. from 1.9 million tonnes at 1.70 grams.
The recovery rate slipped to 57.9% from 65% a period ago.
In Australia the company performed in-line with production in the previous quarter, and its Higginsville operation churned out 33,329 oz. gold in a slight dip from the fourth quarter of 2011. At South Kalgoorlie operations, which Alacer fully owns except for its 49% stake in Frog’s Legs mine, production increased slightly to 22,397 oz. gold
Despite the poor performance in Turkey, Alacer increased its 2012 production guidance expecting stronger production following an updated resource for Copler in February, which showed higher grades.
Alacer revised Copler’s mine schedule to account for higher grades in the new resource model.
The company expects Copler to generate between 195,000 and 200,000 oz. gold during the year, which is up from its 180,000 to 190,000 estimate.
This could mean 156,000 to 160,000 attributable oz. gold — up from 144,000 to 152,000 oz. — which drives the company’s total output to 435,000 to 450,000 oz., or 396,000 to 410,000 attributable oz. gold, as the production guidance for its other operations remain the same.
Attributable gold production reflects the company’s 80% interest in Copler.
Alacer reports first-quarter financials in mid-May.
At head office, Alacer has appointed David Quinlivan as CEO and chief financial officer. Quinlivan takes the helm Aug. 1, when Edward Dowling steps down. Dowling will stay on the company’s board as a non-executive member.
Douglas Tobler will be replaced by Rod Antal as chief financial officer, effective May 21.
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