Galane Gold, the company which operates Botswana’s only gold mine, Mupane Gold has recorded the biggest production in more than five years.
According to a recent statement obtained from its website this Wednesday, the company said it has produced 10,090 ounces of gold which represents its best quarter output since Q4 2013 during the second quarter of the year(Q2: 2018). To achieve this, it milled 214,378 tonnes at an average head grade of 2.18 grams per tonne, with the main contributor being production from Tau of 98,424 tonnes at 3.46 grams per tonne.
Galane Gold’s Chief Executive, Nick Brodie is thrilled with the results especially from Mupane, its Francistown-based mine. “This represents a strong quarter for the Mupane operations as we continue to see increasing production from Tau underground contributing to exceptional operating results.
I look forward to taking the strong management team we have built to revitalize Mupane and using their skills and technical expertise to restart Galaxy,” said Galane top executive.
Galaxy Gold mine, which was acquired in 2015 by the company from Vantage Goldfields, is one of the oldest gold mines in South Africa. It is currently being rehabilitated. “We anticipate our first production at Galaxy in the first quarter of 2019 and annual production at Galaxy to be over 25 000 oz of gold at a cash cost per ounce of less than $800,” said Brodie in a statement early this year.
‘We then plan to complete a study on a second expansion phase with the objective of doubling the capacity at the Galaxy processing plant to 60 000 tpm and decreasing the cash cost per ounce as a result of increased economies of scale.’
The expected opening of Galaxy mine comes at a time when gold prices have been slashed for the current year and 2019.
A poll of 35 analysts and traders conducted by Reuters this month forecast an average gold price of $1,301 an ounce in 2018 and $1,325 in 2019, from predictions of $1,334 and $1,352 respectively in a similar poll three months ago. “The revisions come after gold plunged from $1,365.23 in April to around $1,220, under pressure from a strengthening dollar, expectations of higher U.S. interest rates, a large decline in gold held by exchange-traded funds and a sell-off by speculative investors,” said Reuters.