Australia's St Barbara says its gold mine in Canada on track to meet guidance
(Kitco News) - Australian gold miner St Barbara (ASX: SBM) today released the revised production and cost guidance update for the full financial year 2021 (FY21).
The company said that its Atlantic Gold operation, located in Nova Scotia, Canada, continues to perform to expectations, guidance remains unchanged, with expected production between 100,000 – 110,000 ounces and AISC between A$958 and A$1,050 per ounce.
Further to the currently operational open pit at Atlantic Gold, there is planned expansion of three additional pits nearby at Beaver Dam, Fifteen Mile Stream and Cochrane Hill, with a combined estimated mine life for the operation of 12 years.
The company added that negative grade reconciliation, lower grade in the short term and a slower than predicted transition to Macmahon - with recruitment of critical roles and experienced operators well below expectations - has ultimately impacted the planned mine schedule at its Leonora operation (Australia) and has led to the deferral of mined ore tonnages from FY21 into FY22.
As a result, the company expects production between 150,000 – 160,000 ounces (previously 175,000 ounces) at Leonora, with AISC between A$1,815 and A$1,950 per ounce (previously A$1,590 and A$1,630 per ounce).
The company’s Simberi Operations in Papua New Guinea continue to be impacted by ore variability, as a result of low mining rates not achieving planned face positions, which is affecting gold recovery. A related factor is workforce availability due to COVID-19. St Barbara expects production between 80,000 – 90,000 ounces (previously 95,000 ounces), with AISC between A$1,790 and A$2,030 per ounce (previously A$1,720 and A$1,810 per ounce).
On a consolidated basis, St Barbara anticipates production between 330,000 and 360,000 ounces (previously 370,000 to 380,000 ounces), with AISC between A$1,547 and A$1,695 per ounce (previously A$1,440 and A$1,520 per ounce).
St Barbara is an Australian based, ASX 200 company with gold mining operations in Australia, Canada and Papua New Guinea.