SUNRISE DAM

South African miner AngloGold Ashanti Ltd, operator of the Sunrise Dam mine in Western Australia, has forecast an increase in gold production in the fourth quarter to 1.48 million ounces, reports Australian Associated Press. During the third quarter, AngloGold produced 1.4 million ounces at cash costs of $US311 an ounce. "Operationally, production of 1.4 million ounces was in line with guidance and level with that of the previous quarter," Anglogold Ashanti said.
(See Australian Associated Press: Anglo expects higher fourth quarter gold output )

The mine enjoyed another record production quarter of 131,000oz, equal to that of the first quarter, with total cash costs improving 11% to $7.9/g. It is expected that grades at Sunrise Dam will decline from the third quarter of this year, as mining moves from the high grade southern section of the pit to the lower grade northern section. Mining of this section will take approximately 18 months, and then the project’s development inclines and trial mining will access the higher grade ore.

The underground project is underway with 796m of underground capital development and 742m of operational development completed. Drilling from surface and underground continued to focus on the underground targets of GQ, Cosmo, Astro and Hammerhead. Deep drilling targeting the Carey Shear beneath the open pit intersected encouraging mineralisation over a strike length of approximately 400m. A 15% increase in quarter-on-quarter production was reported. Mining continued in the higher grade areas as planned with recovered grade increasing to 4.60g/t, which offset the effects of both the lower volume treated and the increased mining costs. Total cash costs consequently declined by 4% to A$359/oz ($279/oz).