Bilboes Oxides Project Surges in Gold Production, Returns to Care and Maintenance for Larger Sulphide Project
The Bilboes Oxides project has experienced a significant increase in gold production in the second quarter of 2023, according to a recent announcement.
A total of 1,076 ounces of gold were produced, compared to just 105 ounces in the first quarter. The Bilboes Oxides was intended as a small-scale, low-margin, short-term project which was primarily justified by the benefits of pre-stripping in anticipation of the development of the larger sulphide project.
The Bilboes Oxides project was primarily justified by the benefits of pre-stripping, in anticipation of the development of a larger sulphide project. However, the project has not made an overall cash contribution, prompting the decision to return it to care and maintenance starting from October 1, 2023. Despite this, mining and metallurgical processing will continue until the end of September, with the leaching of deposited material ongoing.
Mark Learmonth, the Chief Executive Officer, commented on the announcement, noting that production at the Blanket site had initially been below expectations. However, with successful management interventions, production significantly improved towards the end of June and early July. In fact, the first week of July saw a record level of production, nearly 400 ounces above the planned amount. Learmonth expressed confidence in meeting the production guidance for 2023, which ranges between 75,000 and 80,000 ounces of gold.
Regarding the Bilboes Oxides project, Learmonth stated that its outlook is uncertain unless it is conducted in conjunction with the waste stripping for the sulphide project. As a result, the decision has been made to return the project to care and maintenance until work on the larger sulphide project begins. At that time, the remaining oxide material will be mined and processed alongside the sulphide ore. It’s important to note that this decision does not reflect on the quality of the larger sulphide project itself, which was the main reason for acquiring the Bilboes site.
The Bilboes Oxides project has seen a significant increase in gold production during the second quarter of 2023. However, due to the lack of overall cash contribution, the project will be returned to care and maintenance. The company remains confident in meeting its production guidance for the year and plans to resume mining and processing of oxide material once work on the larger sulphide project commences.