Vatukoula gold production beats forecast

Business Financial Newswire - Fijian miner Vatukoula Gold Mines says production has increased and it is operating above its revised 50,000-ounce annual forecast.

The company announced a £7.4m placing to fund exploration of new targets.

Its production increase is due to higher underground mining rates and better than expected grades.

Gold recoveries for the fourth quarter have already reached 12,940 ounces, bringing the total recovered for the year to date to 51,491 ounces with five weeks of forward production still to be added.

In addition, initial interpretation of historic geological data and more recent surface drilling has led the company to identify several surface and underground exploration targets, both on current mining licenses and on the surrounding special prospecting licenses.

Exploration of these targets will be funded by a placing of 400m new shares at a price of 1.85p per share to raise £7.4m gross.

CEO David Paxton said, 'We are very excited about the exploration potential at Vatukoula, particularly in this gold price environment.

'Numerous exploration targets have been identified from historic geological records which we believe warrant further investigation.

'The successful placing will provide for a continuous exploration program, without drawing on our current financial reserves.'