|
09:34 AM EDT, 09/06/2016 (MT Newswires) -- Royal Nickel (RNX.TO) on Tuesday reported a strong start to the third quarter at its Beta Hunt mine in Australia and its Reed mine in Manitoba. The company also bolstered its team with the appointment of Kevin Small to the position of director of mining operations.
Mark Selby, President and CEO, said: "The Beta Hunt mine ramp-up continues to progress, with mined gold production expected to increase to 10,500-11,000 ounces during the third quarter of 2016, an annualized rate of 42-44,000 ounces and an increase of more than 30% compared to Q2."
The Reed Mine had another strong month in July, Selby added, generating an estimated $1.4 million in cash flow during the month from RNC's 30% interest. "I am also very pleased to welcome Kevin Small to the RNC team in the position of director, mining operations," he added. "In this new position, Kevin will work with the Beta Hunt team to ensure that the mine successfully completes its ramp-up. We look forward to benefiting from his 26 years of underground mining and gold mining management and technical experience."
In July and August 2016, 89.3 kt of material was mined at Beta Hunt at an average grade of 2.5 g/t, containing 7.2 koz of gold. The average mined grade increased from 2.4 g/t in July to 2.7 g/t in August and is expected to increase toward 3.0 g/t in September. In July 2016, the Reed Mine hoisted 40,041 tonnes of ore at a grade of 4.1% copper and 0.5 g/t gold (100% basis). For the month of July 2016, RNC's 30% share of metal contained in concentrate production from the Reed Mine was 515 tonnes of copper and 131 ounces of gold.
RNC's 30% share of cash flow from the Reed Mine reduced the effective contribution and bridge loan balance by an estimated $1.4 million during the month of July to an estimated $8.6 million.
As well as its operations in Australia and Manitoba, Royal Nickel also owns a majority interest in the West Raglan and Qiqavik projects in Northern Quebec. RNX shares closed at $0.33 on Friday.
|
