Acacia eyes better year as it  exceeds Q3 output target

Monday October 8 2018

A miner inside the Bulyanhulu gold mine in northern Tanzania. PHOTO | FILE

A miner inside the Bulyanhulu gold mine in northern Tanzania. Goldminer Acacia Mining Plc recorded a strong performance for the quarter ending September 30, 2018. FILE | NATION MEDIA GROUP 

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Goldminer Acacia Mining Plc has recorded a strong performance for the quarter ending September 30, with production jumping from 133,778 ounces in the second quarter to 391,000 ounces.

“We are very pleased to report a strong operational performance for the year, and  expect to exceed the upper end of our full-year production guidance range. We are targeting production in excess of 500,000 ounces for the full year,” Peter Geleta, Acacia’s interim chief executive officer, said on Monday.

The guidance range was 435,000 to 475,000 ounces for the full year production, from its three mines in northwestern Tanzania.

Higher grade

The company attributes the good performance to high production in the North Mara sites, which produced 89,287 ounces for the quarter, a 24 per cent increase from 72,011 ounces in the same period in 2017. 

“This was mainly due to 21 per cent higher head grades compared with the same period in  2017, which was driven by higher grade ore received from the eastern part of the Nyabirama open pit,” said Mr Geleta.

The Buzwagi mine recorded 47 per cent drop in production -- 36,460 ounces --   from 69,097 ounces in the same period last year, which was blamed on “transitioning to a lower grade stockpile processing operation in line with its remaining life of mine plan.”

Reduced operations

The Bulyanhulu mine produced 10,893 ounces for the quarter, 78 per cent below Q3 2017 output of 50,094 ounces.

During the quarter, the mine’s output was from the retreatment of tailings due reduced operations in the underground mine from late 2017.

But the Q3 2018 output of 136,640 ounces, is 29 per cent lower than that of Q3 2017 (191,203 ounces). The firm said this is attributable to the reduced operations in Bulyanhulu and the stockpile processing in Buzwagi.