Shares in Angel Mining (LON:ANGM) rallied 9.5% after the company announced it has begun introducing ore into the process plant at the Nalunaq gold mine in Greenland.
When the process plant reaches target production, the directors expect the company to produce approximately 65 ounces of gold per day and an annual production of approximately 25,000 ounces.
Angel’s forecast cash cost per ounce of gold at target production is approximately US$560 which it expects to achieve in Q1 2011.
It is expected that the mine will produce annualised revenues and free cash of approximately US$32.5 million and US$18.5 million respectively.
“We are extremely pleased to have commenced production at Nalunaq and are looking forward to moving into profitability and positive cashflow," said chief executive of Angel Mining Nicholas Hall.
Angel is aiming to minimise transport and refining costs by shipping doré once it has produced an optimal quantity.
The first shipment of doré for refining is expected to take place in January 2011.