Saracen bounces back from Carosue Dam accident

The Carosue Dam mine. Image: Saracen Mineral Holdings.

Saracen Mineral Holdings has achieved record production at the Carosue Dam gold mine in Western Australia, boosting the company’s position to meet its 2021 fiscal year guidance.

Saracen delivered nearly 55,000 ounces of gold at an all-in sustaining cost (AISC) of $1262 an ounce at Carosue Dam during the September quarter.

Mining has returned to budgeted levels since a tragic fatality hit the mine in July.

Saracen also noted an “outstanding progress” in the Carosue Dam mill expansion to 3.2 million tonnes a year, with GR Engineering Services completing all structural and mechanical works.

The gold miner now expects commissioning to take place in the current quarter.

Saracen’s other Western Australian mines, the Super Pit contributed 55,190 attributable ounces and Thunderbox 44,211 ounces during the September period.

The company is on track to meet its production guidance of 600,000–640,000 ounces at an AISC of $1300–$1400.

In a season where mining companies folded their capital and exploration budget, Saracen has remained committed to a $484 million budget to future-proof the business.

“The combination of further growth at our existing assets and those of Northern Star, along with the synergies we stand to generate through the planned merger, puts our combined business in an extremely enviable position,” Saracen managing director Raleigh Finlayson concluded.

“We will be generating substantial growth while most of the global gold industry is shrinking, we will be reducing costs in the process, and all in tier one locations.”

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