Intermin Resources Limited (ASX:IRC) has found additional gold within and below the open pit of the Teal Gold Project in Western Australia, prompting a production guidance increase.
With mining of stages I and II at Teal now complete, guidance has been boosted to between 21,000 and 22,000 ounces.
After the pre-strip was completed at stage II in the December quarter of 2017, the focus has been on completion of ore mining from stage I and stage II of the pit.
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As the pit progressed to the end of the design life, additional ore was identified within and below the design and was mined out where possible.
Managing director Jon Price said: “While the project has not been without its challenges, Teal has more than delivered on its promises.
“It is extremely pleasing to see the mine perform well against feasibility study estimates.”
On March 10, the final load of ore was hauled to the ROM pad and mine closure activities began.
230,000 tonnes of ore mined
In total, 230,000 tonnes of ore has been mined grading 3.2 g/t gold for 23,500 ounces mined.
This compares favourably with the 203,000 tonnes grading 3.2 g/t for 20,700 ounces mined as estimated in the feasibility studies for both stages.
The Teal project is 11 kilometres northwest of Kalgoorlie-Boulder.
Based on the additional tonnage, expected grade and improved recovery from the operation, the company has lifted production guidance at an all-in cost of A$1,000–$1,100 per ounce.
Milling at Lakewood facility
The second milling campaign at the nearby Lakewood toll milling facility has been completed with 26,600 tonnes milled at a reconciled grade of 3.5 g/t.
Reconciled gold production of 2,910 fine ounces was achieved at an improved 97.2% recovery with $4.9 million in gross revenue received at an average gold price of $1,684 per ounce.
Final milling will be completed this month with about 50,000 tonnes expected to be treated.
The final production and financial reconciliations are expected in the June quarter of 2018.
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Price added: “The company is now in a strong position to fund an aggressive growth strategy.
“In 2018 this growth strategy means resource growth and new discoveries in one of the most productive goldfields in the world.
“We look forward to delivering ongoing results from the 55,000-metre drill program underway and believe the Anthill, Blister Dam and Teal project areas have potential to deliver a significant step change for the business.”
Intermin has joint ventures in place across multiple commodities and regions of Australia providing exposure to vanadium, copper, PGEs, gold and nickel/cobalt.