Intermin Resources Limited (ASX:IRC) mined a record 65,200 tonnes of ore grading 3.53 g/t gold for 7,400 ounces during the December 2017 quarter at its Teal Gold Mine in Western Australia.
Significantly, the company produced 5,214 ounces of gold at C1 costs of A$680/ounce and an all-in cost (AIC) of A$1,292/ounce inclusive of A$1.64 million (A$315/ounce) in Teal Stage II pre-strip expenditure.
Ore processing at the Paddington Mill was completed during the period with 1,287 fine ounces of gold produced.
On track to achieve guidance of 18,000 to 20,000 ounces of gold
The first toll treatment campaign at the 1 million tonnes per annum (mtpa) Lakewood plant commenced during the period with 34,700 tonnes processed grading 3.67 g/t gold for 3,927 fine ounces produced.
The second treatment campaign commenced subsequent to quarter end and will process circa 30,000 tonnes of ore on stockpile with the third and final campaign scheduled for late February.
It is expected that all mined ore will be treated in the March quarter enabling production and financials to be finalised early in the June quarter.
Intermin maintains guidance at the combined Teal open pit of 18,000 to 20,000 ounces of gold recovered at an AIC of A$1,000 to A$1,100 per ounce.
The company’s strategy is to grow its resource base above the 1 million ounce mark with an aggressive drill program.
Intermin has a busy year ahead in 2018 after drilling over 26,000 metres in 2017 across eight priority project areas on major gold bearing shear zones.
Preparations are well advanced to commence a fully funded $4 million, 50,000-60,000 metre drilling program in the current March quarter.
The company is well funded with current cash and tradeable securities totalling $8.7 million.
News flow to continue in 2018
Drilling at the Binduli gold project by JV partner Evolution Mining Limited (ASX:EVN) comprised 38 holes for 4,006 metres with results expected during this quarter.
The results of the metallurgical testwork from the Richmond Vanadium Project underway in China under supervision of JV partner AXF Resources are expected in the June quarter 2018.
Janet Ivy Mining Royalty payments of $0.50/tonne are now due after treated tonnages exceeded the prepayment threshold with regular quarterly payments expected through 2018.