The Asia Miner - Expansion planned as Simberi mining begins
AFTER starting production in December a 60% increase in throughput is already being considered by Allied Gold at its Simberi mine in Papua New Guinea.
The Perth-based miner began production from its flagship Aus$87 million gold mine in the Tabar Islands at a rate of 84,000 ounces per annum. However, Allied Gold non-executive director Greg Steemson says the company already expects to ramp up annual gold production at Simberi to about 135,000 ounces, a 60% increase on initial production rates.
He says the production gains will come from plans to boost Simberi's current 2.2 million tonne per annum carbon-in-leach (CIL) processing plant, to at least 3.2 million tonnes per year.
Engineering studies for this upgrade have been completed. Most of 2008 will be spent bedding down production expectations and expanding the oxide reserve base to underpin the planned production increase. The CIL expansion is scheduled to come on line in the second half of 2009.
Greg Steemson says Allied Gold is matching its maiden production with a parallel enhanced exploration program on Simberi and neighbouring Tatau and Tabar Islands.
"The exploration lift will focus on increasing our ore reserves around known deposits, particularly the Sorowar deposit, and in defining new deposits on the neighbouring islands."
Simberi has current reserves and in-pit resources totalling 17.7 million tonnes of ore grading on average 1.37 grams/tonne gold, for a contained 785,000 ounces. Simberi has a current mine life of just over eight years for an initial recovery estimate of 692,000 ounces.
First ores are being mined from the Samat ore body, which is closest to the coastal processing plant and wharf built by Allied Gold. Mainstream mining will move to the Sorowar pit in the first half of this year. Output from these deposits will be carried by overhead conveyor to the processing plant on the coast.
http://www.alliedgold.com.au/media.php
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