London, England — MININGREVIEW.COM — 18 June 2008 – Gold and silver production at the Amesmessa gold project in Algeria – majority owned and controlled by AIM-listed GMA Resources plc – dropped in April and May 2008, mainly because of a lack of access to explosives for blasting.
A company production report issued here revealed that production for the month of April had amounted to 2 000 oz of gold and 335 oz of silver. May output had been 1 327 oz of gold and 354 oz of silver.
Production for both months was well below March output, which was 2 781 oz of gold and 450 oz of silver. These results were substantially below previously expected production levels for April and May 2008, the report added.
It said that the principal reason for the lower-than-expected level of production was a lack of access to explosives for blasting. The amount of explosives received over the April and May had been insufficient to perform at planned mining levels, and the company had to rely on surface “free dig” lower grade ore.
Assuming explosives are received as expected, the report continued, the company was confident that Amesmessa gold production would recover to previously expected levels and continue its climb to feasibility study levels over the next few months. Notwithstanding this, GMA now expects revenues and earnings for the year ending 31 December 2008 to be significantly below market expectations.