JOHANNESBURG (miningweekly.com) – Mwana Africa has increased gold production at its Zimbabwe-based Freda Rebecca mine by 23% to 16 555 oz in the quarter ended September 30, owing to improvements in feed grade, recovery and tons milled.

Tons milled rose 21.3% to 319 768 t over the three months, while the average feed grade improved, from 2.07 g/t in the first quarter of the financial year, to 2.25 g/t in the quarter under review, as the main production stopes became fully available and intersected expected grades.

Gold recovery for the quarter, at 80%, was 4.2% higher that the 76.8% reported in the first quarter of the year, the group reported in a trading statement.

Meanwhile, cash costs fell 18% to $880/oz for the three months, while all-in sustaining costs (AISC) decreased, from $1 283/oz in the prior quarter, to $1 061/oz in the quarter under review.

“The modifications implemented at Freda Rebecca in the previous quarters appear to be bearing fruit and we look forward to maintaining a more consistent operating performance in the coming quarter,” CEO Kalaa Mpinga said on Monday.

TROJAN NICKEL MINE
Meanwhile, nickel-in-concentrate production from the company’s Trojan mine, also in Zimbabwe, increased 5% to 1 989 t, owing to a 3% increase in volumes mined to 160 741 t as the refurbishment of equipment programmes was     completed.

Headgrade of 1.496% at Trojan was 2% lower than the prior quarter as a result of the temporary mining of lower-grade massive ores in accordance with the mine plan.

In addition, recoveries slumped 2% to 82.5%, while nickel sales of 2 008 t for the quarter were up 7% on the first three months of the financial year.

While cash costs increased 1% to $13 900/t, AISC decreased 1% to $14 566/t in the three months under review.

Mpinga said the operation's return to profitability had allowed the group to reverse previous provisions for deferred tax of $4-million for the six months to September, carried in the accounts as an asset.

“We continue to ramp up to steady-state production and expect to complete the refurbishment programme at Trojan in December next year,” he added.

BINDURA SMELTER
Elsewhere in Zimbabwe, preparatory work at Mwara’s Bindura smelter and refinery was progressing well and the company expected to make a submission to the environmental management authority later this month.

Key equipment orders and contracts had been made, including for the control     and instrumentation; the furnace off gas system; converters; the precipitator overhaul; furnace and converter bricks; transformer inspection; cleaning and testing; cooling system coolers; engineering design and project support; and converter repairs.      

Financing discussions relating to the smelter were, meanwhile, advancing.

“We have continued to invest in making our operations more stable and are now demonstrating the positive impact of that investment. Arguably, the most important decision has been to begin the process of restarting the Bindura smelter at a cost of $26.5-million. The smelter is set to be restarted in the first half of next year and will produce nickel leach alloy,” outlined Mpinga.

KLIPSPRINGER DIAMOND MINE
Further, retreatment of the Marsfontein fine residue tailings at the company’s Klipspringer mine, in South Africa, produced 32 850 ct during the quarter, an increase of 38% on the prior three months.

An average price of $21/ct was achieved during the quarter, while steady-state production continued and efforts to increase the dense media separation feed rate were being investigated.

“The recovery of diamonds from tailings continues to generate cash flows that significantly contribute to the Klipspringer mine's continuing care-and-maintenance programme,” said Mpinga.

EXPLORATION YIELDS
Looking to the group’s exploration activities, Mwana completed a resource conversion drilling programme at the Zani-Kodo project, in the Democratic Republic of Congo (DRC), over the period, converting 26 000 oz of near-surface, open-pittable mineralisation to the indicated status.

The 2014 exploration programme at its DRC-based Semkhat/Hailiang joint venture was, meanwhile, also under way, with eight drill rigs operating on several targets.