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Vatukoula Gold Mines In Funding Discussions With Investors

Vatukoula Gold Mines non-executive chairman, Yingbin Ian He, has confirmed they are continuing discussions with some strategic investors for major funding. Mr Yingbin highlighted this in the mine’s operational update
20 Apr 2015 10:55
Vatukoula Gold Mines In Funding Discussions With Investors

Vatukoula Gold Mines non-executive chairman, Yingbin Ian He, has confirmed they are continuing discussions with some strategic investors for major funding.

Mr Yingbin highlighted this in the mine’s operational update for the six months ended December 31, 2014.

He indicated substantial funding is required for mine development and expansion, in order to achieve the mine’s nameplate capacity and to reduce unit cost.

“The cash advances under the Zhongrun Loan agreement have enabled the mine to invest in key pieces of capital equipment and mine infrastructure,” he said.

“This investment and the lower price fuel prices have helped decrease the cash costs per ounce.

“We are seeing a general downward trend in our costs with the cash cost in December 2014 at US$1011 (FJ$2083) per ounce and US$139 (FJ$286) per tonne or ore.

“For the months of January and February 2015, however, the cash costs increased to around US$1250 (FJ$2576) and 1350 per ounce range due to lower ore grades.”

 

Purchase of shares

Meanwhile, Mr Yingbin said they are in continued discussions with Zhongrun Resources Investment Corporation in relation to Zhongrun’s intention to purchase VGM shares from other shareholders who wish to sell their shares.

This would follow the cancellation of the VGM listing on the AIM (Alternative Investment Market) exchange the past year.

“We were informed that Zhongrun and its financial advisors have started the preparation work including opening a special broker account to handle the share purchases,” he said.

“We have been informed that the purchasing process is expected to be started by the end of April (this month).”

 

Production and development

Meanwhile, the update highlighted the total tonnes of ore and waste mined for the six months decreased by approximately five per cent to 177,895 tonnes.

The lower tonnages were primarily driven by decreases in capital development metres.

The ore delivered from underground for the six months was 138,007 tonnes compared to 116,448 tonnes in the same period last year.

The updated attributed this increase to a 45 per cent increase in strike drive metres and a 15 per cent increase in operating development both of which are treated as ore.

The average underground grade for the period was 5.6 grams per tonne, which was marginally higher than the same period last year (5.56 grams per tonne).

 

Vatukoula Treatment Plant

During the 6 months ended December 2014, the Vatukoula Treatment Plant processed 191,920 tonnes compared with 207,138 for the same period last year.

The decrease was driven by lower surface ore delivered to the mill. The average grade increased to 4.63 grams per tonne from 4.06 grams per tonne delivered over the same period.

This was primarily driven by the lower amount of lower grade surface material processed during the period, which would dilute the grade delivered to the mill.

Feedback: rachnal@fijisun.com.fj

 



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