HomeGoldResolute to concentrate on Africa

Resolute to concentrate on Africa

Resolute drill team
at work in Mali
Perth, Australia — MININGREVIEW.COM — 28 May 2009 – Resolute Mining Limited – the third- largest gold producer traded in Australia – is willing to sell its Australian mine to concentrate on projects in Africa.

Bloomberg News quotes CEO Peter Sullivan as saying that Resolute’s Ravenswood project in north Queensland will produce 110 000 ounces of gold annually within 12 months. “The company hasn’t received offers for the mine, which is currently being changed to underground operation,” he added.

“It’s nice to have, but we’d be happy to just have African assets,” Sullivan said of Ravenswood in an interview at Resolute’s head office here. “We have more opportunities in Africa rather than Australia. It’s very under-explored relative to Australia.”

Gold production in Australia fell to 219 tonnes last year from a peak of 318 tonnes in 1998, according to data collector Surbiton Associates. “Miners wanting to boost output are turning to new areas in Africa, compared with Australia, which has had 150 years of exploration and mining,” Sullivan said.

Resolute – which also owns the 150 000 ounce a year Golden Pride mine in Tanzania – says that once  its flagship Syama mine in Mali is in full production by the end of the year, it will get more than three- quarters of its production from Africa.

“Commissioning of Syama, which will produce 250 000 ounces annually, started in March, and output will begin at the end of next month,” Sullivan said. “Syama has 1.8 million ounces of reserves, he added.