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4
MODERN MINING
February 2015
MINING News
In its fourth quarter production report for
the three months ended 31 December
2014, Acacia Mining (formerly African
Barrick Gold) reports that gold production
for the reporting period totalled 181 084
ounces, a 10 % increase on the corre-
sponding quarter of 2013. The increase in
production was predominantly driven by
increased throughput at the North Mara
mine and the contribution of the repro-
cessed tailings through the new CIL circuit
at Bulyanhulu. This was partially offset by
a planned reduction in grade at Buzwagi
impacting production at the mine.
Gold ounces sold for the quarter were
194 243, a 16 % increase from the corre-
sponding quarter of 2013. Gold ounces
sold were 7 % higher than gold produced
as a result of gold on hand from Q3 2014
being sold during the quarter.
“We are pleased to report further prog-
ress in the fourth quarter resulting in full
year production of 718 651 ounces, ahead
of our original 2014 guidance and a 13 %
improvement on 2013,” comments Brad
Gordon, CEO of Acacia Mining. “As a result
of our continued cost discipline, we have
delivered our ninth successive quarterly
reduction in all-in sustaining costs (AISC)
and generated net cash flow of US$7 mil-
lion in the quarter.”
Acacia’s costs drop for ninth successive quarter
At Bulyanhulu, total production
amounted to 66 033 ounces, including
7 035 ounces from reprocessed tailings.
Production from run-of-mine processing
was 11 % ahead of Q4 2013, with a 7 %
increase in throughput and a 14 % increase
in grade to 9,0 g/t (partially offset by lower
recoveries). Recoveries were predomi-
nantly impacted by instability issues in the
reagent mix in the elution circuit whilst
the expanded CIL circuit was brought on
stream, which led to higher tailings losses
than planned.
The ramp up of the mine during the
quarter was also slower than planned, with
low grade alimak stopes mined during the
quarter and access to high grade stopes
delayed due to lower loader availabilities.
These issues are in the process of being
resolved and Acacia says it expects the
step up in grade and production to take
place as 2015 progresses.
At Buzwagi, gold production of 44 398
ounces was 14 % lower than in Q4 2013,
as a result of the planned reversion to
around reserve grade during the quarter
which led to a 26 % reduction in head
grade against Q4 2013. A key area of the
business improvement focus at Buzwagi
has been centred on improvement of the
process plant and circuit performance. As
A key area of the business improvement focus at Buzwagi (seen here) has been centred on improvement of the process plant and circuit performance. The
recovery achieved during the quarter was 94,2 % – which is 6 % higher than during the same period in 2013 (photo: Acacia Mining).
a result, the stability of the plant and circuit
performance has been improved, which in
turn resulted in a recovery of 94,2 % for the
quarter, 6 % higher than the same period
in 2013, which – together with improved
throughput – partially offset the expected
reduction in grade.
At North Mara, total production for the
quarter amounted to 70 655 ounces with
mining continuing to focus on the main
orebody in the Gokona pit, supplemented
by mining in the Nyabirama pit. The fea-
sibility study into mining Gokona via an
underground operation was completed
successfully during the quarter and portal
development of the underground contin-
ued to progress in line with expectations.
Mill throughput for the quarter of 718 000
tonnes was 12 % higher than the same
period in 2013. The higher milled tonnes
were due to improved mill efficiencies and
less maintenance downtime compared to
the same period in 2013.
The average grade processed for the
quarter was 2,7 g/t which was 16 % lower
than the prior year period. The decrease in
grade was predominantly due to Buzwagi
and the impact of the tailings repro-
cessing at Bulyanhulu, and was in part
offset by a higher run-of-mine grade at
Bulyanhulu.