View says gold production down at Bronzewing

Gold and nickel miner View Resources Ltd says its Bronzewing gold mine in the Eastern Goldfields is unlikely to meet a first quarter 2008 production target of 30,000 ounces, and has suspended development of the nearby Calista mine to reduce costs.

The Perth-based company met on the minesite yesterday to review the January performance and consider its outlook for the immediate future.

View said January production was approximately 6,500 ounces compared to an expectation of around 10,000 ounces. The tonnes milled were close to budget but the reconciled head-grade was below forecast.

In response, the company has suspended underground capital development of the Calista zone, 8 kilometres west of the Bronzewing mill, and is looking for further operating cost savings across the whole mine site

View said immediate future production was being focussed on the central open pit and the Discovery and Calista underground mines where significant tonnages of ore had already been developed for stoping.

Mining from the Success pit has been re-scheduled until the June quarter to further improve short-term cash flow.

A complete review of the various ore sources and production schedules is being undertaken to maximise the return from available assets.

View said the previously-announced sale of the Carnilya Hill mine was on schedule for completion.