St Barbara sees rain disruption at Gwalia gold mine

St Barbara’s Gwalia mine has seen limited flooding and damage to the Hoover decline and the lowest parts of the mine.

Following the heavy rains that hit the region, where the month of February saw an aggregate rainfall of 191mm as compared to the average of 13mm, the water levels exceeded the mine’s storage and pumping capacity.

St Barbara has lowered guidance at the mine and is now forecast to produce between 130 000 to 135 000 ounces of gold for the year ending 30 June.

This is a drop of between 10 000 to 15 000 ounces from the previous guidance forecast of 145 000.

The total company production guide for FY11 is now set to be between 250 000 and 270 000 ounces.

Up until the rain hit, the mine was on target, however the rain contributed to an historic void that intersected the Hoover decline at 235 metres below the surface (mbs), which created a small opening in the side wall.

This has since been backfilled.

Flooding also added to a temporary interruption to operations due to a delay in developing below the 1300mbs level because of flooding in the Hoover decline.

Despite this, there is expected to be no impact on production forecasts for FY12 and FY13.


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