Thanks to MiningNews.netDisappointing result for Sons of...

Thanks to MiningNews.net

Disappointing result for Sons of Gwalia

Michael Quinn


Thursday, April 29, 2004
THE new management at Sons of Gwalia have had a baptism of fire, with gold production in the March quarter suffering because of the wet weather in Western Australia's Eastern Goldfields and the pit wall problem at the Tarmoola operation.

SOG produced 109,328 ounces at cash costs of $486/oz, and while full year forecasts of 520-530,000oz remains in place, the company warned that cash costs for the year would be at the higher end of the targeted $420-435/oz.

For its production SOG received $606/oz, giving a cash margin of $120/oz.

Aside from Tarmoola, other problems faced by the gold division included difficult drill and blast conditions at the Safari Bore open pit at Carosue Dam, which led to the mining of remnant ore from the Karari pit and processing of lower grade stockpiles.

On the good news front, SOG said it was increasingly confident of delineating a substantial underground resource at Marvel Loch.

Meantime tantalum production and sales were in line with forecasts at 528,073lbs and 562,872lbs respectively.

On the corporate front, an independent consultant has been commissioned to prepare an information memorandum on the nickel prospectivity of the company's landholdings.

SOG also said it was looking to sell its former Copperhead gold mine and associated tenements near Bullfinch at the northern end of the Southern Cross region.

SOG shares dropped 21c yesterday and were down 8c to $2.42 in late morning trade today.