15/06/2009 - 10:04

Resolute Mining achieves first gold pour

15/06/2009 - 10:04

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Shares in Perth-based Resolute Mining have risen after the company produced first gold at its redeveloped Syama mine in Mali.

Shares in Perth-based Resolute Mining have risen after the company produced first gold at its redeveloped Syama mine in Mali.

Resolute's share price rose four cents to touch a high of 77c before easing to 76c at 11:38 AEST.

Chief executive Peter Sullivan welcomed the production milestone as a watershed for the Syama gold mine and Resolute.

"This removes what was perceived as one of the major risks in the redevelopment of Syama.

"Resolute now looks forward to building on this world-class production and exploration base in one of Africa's premier gold provinces, which complements our existing substantial gold operations in Tanzania and Australia."

Syama is expected to produce an average of 250,000 ounces of gold annually.

The first gold pour follows a $25 million capital raising completed last month.

 

 

The announcement is below:

 

Resolute Mining Limited is pleased to announce that it has produced first gold from the sulphide ore processing circuit at its Syama Gold Mine in Mali.

This represents a landmark milestone in the development of the Syama Gold Mine as it demonstrates the technical viability of the Syama processing facility.

The leaching of calcine and recovery of gold was the final step in establishing that the feasibility testwork results can be repeated at the plant scale.

Since commissioning commenced the roaster run time and throughput rates have steadily increased with the consistent production of a calcine suitable for leaching. Preliminary metallurgical reconciliations indicate that over 85% of gold in the calcine is being recovered.

Commissioning progress since April has been steady and satisfactory and the plant is expected to remain in commissioning mode until the end of the month.

Resolute Chief Executive Officer Peter Sullivan welcomed the production milestone as a watershed for the Syama Gold Mine and Resolute.

"This removes what was perceived as one of the major risks in the redevelopment of Syama."

"Few projects can match Syama's world-class combination of long life resources globally significant production and terrific potential for rapid expansion and resource growth.

"Resolute now looks forward to building on this world-class production and exploration base in one of Africa's premier gold provinces, which complements our existing substantial gold operations in Tanzania and Australia."

At full capacity, Syama is forecast to produce an average of 250,000 ounces of gold per annum over the life of the mine.

This will make Syama the fourth largest gold mine in Mali, which is already Africa's third largest gold producing nation after South Africa and Ghana.

It will also consolidate Resolute's status as one of Australia's leading ASX-listed gold miners on both a production and resource ounce basis.

Resolute holds an 80% interest in the Syama Gold Mine, with the remaining interest held by the Government of Mali.

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