Good news for gold

Bendigo Mining has announced that production has nearly doubled to 9180 oz gold in there recently released quarterley report, with Australian dollar prices benefiting the company.

According to Managing Director and CEO Rod Hanson, the trial mining phase at Bendigo is continuing successfully with gold production almost double that achieved last quarter.

“The result was delivered by an increase in mining and processing rates combined with the continuation of very good head grades from Gill reef, which averaged 10 g/t gold,” he said.

“We have completed six months of successful trial mining in Bendigo. If this performance continues, our plan will be supported by Gill reef for at least another 12 months.”

According to Hanson, an increase to more commercial rates of production requires the discovery of additional large reefs to provide increased availability and flexibility of ore sources.

“With this goal in mind, I am pleased to report that we discovered two new reefs this quarter, Nankervis and Dunlop reefs, both having potential to be included in our near term mine plan,” he said.

“Drilling to test for extensions of these reefs is underway.

“We are benefiting from the strong A$ gold price, with gold sales generating $11 million of revenue for the quarter.”

According to the company’s quarterley report, the combination of a strong gold price and high head grade helped generate positive cashflow of $2 million during the quarter and increased the company’s cash balance to $45 million.

“It was a great quarter where production, exploration and cashflow were all positive. Our substantial cash balance in the present climate provides us with plenty of flexibility to grow,” Hanson said.

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