London, England — MININGREVIEW.COM — 12 January 2009 – Gold production at the Amesmessa mine in Algeria – owned by AIM-listed GMA Resources Plc – is continuing its upward trend with significant increases for the past three months in succession.
A production update issue here by the company reveals output of 1 205 oz of gold and 233 oz of silver in October, 1 550 oz of gold and 293 oz of silver in November, and 2 537 oz of gold and 465 oz of silver in December. This means a total of 5 292 oz of gold and 991 oz of silver for the last quarter of 2008.
The update confirmed that these production results were in line with the board’s expectations, and reflected the resumed deliveries of commercial quantities of explosives during November and December 2008.
“The disrupted supply of explosives was the primary factor which depressed production up until December 2008,” the update explained. “Three shipments of 80, 165 and 150 tonnes of explosives were delivered to Amesmessa in November and December. Regular monthly shipments are expected during 2009,” said GMA Resources, “and production should now increase to commercial levels over the coming months.”
Annual production for Amesmessa for 2008 amounted to 21 156 ounces of gold and 3, 48 ounces of silver.
GMA Resources CEO Douglas Perkins commented: “The production results at Amesmessa are ramping up as a result of explosives deliveries, and we expect this to continue in 2009. We continue to work on supply chain and cash flow issues in Algeria, and both are improving with production increases. We expect to reach steady state production and design capacity by the end of the first quarter in 2009,” he concluded.