Johannesburg, South Africa — 16 July 2012 – The Buffelsfontein mine continues to give mining junior Village Main Reef a hard time, and was the main contributor to the company missing out on its output guidance for a third quarter in a row.
Miningmx reports that Village has posted production figures for the June-quarter, reporting output of 46,424oz of gold and 1,436t of antimony. The figure for gold included a first-time contribution of 6,944 oz from Blyvooruitzicht, the mine it recently acquired from DRDGold.
The report shows that, excluding Blyvoor’s production, the group’s output was 0.73% lower than that of the first quarter; which itself showed a 15% decrease on the December period.
“Our expectations are that production volumes for June will be more in line with volumes achieved during the December-2011 quarter,” Village said in commentary accompanying its March-quarter results. This has failed to materialise, with Buffelsfontein’s output down a further 5%.
“Although Buffelsfontein managed to improve gold grades mined, this did not translate to higher gold production,” read comment in the latest production update. “Production volumes at Buffelsfontein were negatively impacted due to safety stoppages which resulted from a fire at No. 7 shaft, as well as stoppages related to seismic activity at the mine.”
The group said safety stoppages were an issue at all its operations, resulting in a loss of 53 production days – the equivalent of 107kg of gold production and 86t of antimony production.
“The loss of production and the impact of winter electricity tariffs have had a negative impact on the notional cash cost per kg, although absolute costs at the operations were well controlled,” Village said.
The higher winter electricity tariffs added some R30 million to the costs of all the operations in the group during June 2012, with approximately R11 million of this being attributed to Blyvoor.
Source: Miningmx. For more information, click here.