Independence downsizes Tropicana expectations

Independence Group has downsized forecasted quarterly gold production at its part-owned Tropicana gold mine, after producing first gold within budget and ahead of schedule.

The mine is now expected to produce between 90,000-110,000 ounces of gold for the December quarter, down from a target of between 120,000-160,000oz previously announced in the company's annual report.

The Perth-based company has a 30 per cent stake in Tropicana, 330 kilometres north-east of Kalgoorlie, with South African mining company AngloGold Ashanti holding the balance.

The partners continue to forecast annual production of between 470,000 and 490,000oz of gold in the first three years, as well as anticipating cash costs plus royalties being in the range of $590-$630/oz during that time.

The Tropicana gold project comprises of 12,000 square kilometres of tenements, stretching over more than 300km of strike length along the Yilgarn Craton and Frazer Range mobile belt collision zone.

Independence shares are down 15 cents to $3.50, as of midday, WST.