Higginsville performance continues to build for Avoca Kate...

Higginsville performance continues to build for Avoca

Kate Haycock -- MINING NEWS --
Wednesday, 28 January 2009

EMERGING gold miner Avoca Resources has continued to plug along at Higginsville during its second quarter as a producer, with gold production increasing 24%.

The company’s production for the three months to December 31 hit 27,856 ounces from 242,655 tonnes mined at 3.92 grams per tonne gold, while 264,415t at 3.31gpt went through the treatment plant with the addition of some extra lower grade stockpiled material.

In the previous three-month period, the Western Australian operation produced 21,766oz of gold at 2.9gpt gold from 251,635t processed.

The miner said the increased production – up 24% in the three months to December – was in line with expectations, while sales totalled 25,536oz at an average gold price of $A1187/oz.

Earlier this month the company also raised $28.9 million to finance a paste-fill plant, expected to cost around $15 million, and for future working capital.

Before this, Avoca had only $4.05 cash on hand at the end of the quarter and total debt of $66.8 million.

Avoca poured its first gold bar at Higginsville on July 8 last year.

Shares in the Perth-based company were last trading at $1.70, down 2c in midday trade.