London, England — MININGREVIEW.COM — 08 July 2009 – GMA Resources plc – incorporated in Australia and listed on the London Stock Exchange’s Alternative Investment Market – has announced that its Amesmessa Gold Mine in Algeria produced a total of 18 637 ounces of gold in the first half of 2009 “’ a 75% increase on the 10 620 ounces produced in the second half of 2008.
The company’s latest production update released here revealed that the mine had produced 2 503 ounces of gold and 520 ounces of silver in June. It added that approximately 58 000 ounces of gold had remained on the pads as of 30 June. Gold sales for the first half of the year had averaged US$914.29 per ounce against a budgeted price of US$802 per ounce.
The update explained that June’s shortfall against expected monthly gold production had occurred because of a mechanical failure of tertiary crushers and inadequate supply of spare parts, particularly for the tertiary crushers. GMA holds significant contingency stocks of mining consumables, but it is not feasible for these stocks to include every piece of equipment critical to mining operations.
Due to the increasingly high volumes of activity in Algerian ports and bureaucratic obstacles for international shipments, the company has experienced delays in receiving critical supplies. Significant measures are being taken to resolve these structural problems, including a move to roll-on/roll-off shipping, where a truck originating in Algeria will collect goods from Europe and then return to Algeria by daily ferry from Marseilles.
GMA chief executive Douglas Perkins commented: “As previously announced, we will continue to report production on a monthly basis during Q3 of 2009 to keep shareholders informed of production levels on a timely basis. We are disappointed that June production fell short of our 2009 plan, particularly after record production in May. We are taking significant steps to improve efficiencies within our supply chain,” he added.