Saracen Mineral managing director Raleigh Finlayson is confident the company is on track to reach its goal of becoming a 400,000oz a year gold producer following its recent progress.
The company has increased its reserves by 20 per cent since June last year to a record 2.5 million ounces (Moz).
Saracen’s exploration success follows a string of positive achievements, starting with record gold production in the 2018 financial year and increased production guidance in the 2019 financial year.
The record reserve was also achieved with a discovery cost of just $25 per reserve ounce, compared to $35 in the 2017 financial year.
Saracen’s Carosue Dam operations contributed to the record figure as it experienced a reserves increase, reaching 1Moz, representing a 64 per cent climb from last financial year’s reserve of 610,000oz.
This owes to the company’s aggressive drilling during the 2018 financial year, on top of a positive outcome from its detailed engineering phase at the Karari Fill operations.
Saracen’s Thunderbox reserves also increased to 980,000oz, up from 907,000oz in the 2017 financial year.
The positive finding is in line with the company’s target to grow mine life and production from organic sources. The new reserve supports a mine life of at least seven years, based on a production target that the company has increased for the 2019 financial year.
Finlayson said, “We have just posted a record production of 316,453oz for the past financial year, which exceeded our guidance. And we increased our guidance for this financial year to 325,000 to 345,000oz.”
The new reserve figure will also build a case for Saracen’s production growth, aimed to reach a base case of 350,000oz/y as part of its seven-year plan.
“With almost 9Moz in resources and drilling generating strong results across our assets, we are confident of achieving our objective of becoming a 400,000oz/y gold producer with long mine life,” Finlayson added.