CYANIDE SPILL BY AUSTRALIA'S DOME BOOSTS COSTS, CUTS OUTPUT
PERTH, May 02, 2000 (AsiaPulse via COMTEX) -- A cyanide spill has contributed
to a blow out in March quarter cash costs at the Papua New Guinea gold
operations of Australia's Dome Resources NL.
The impact on production at the Tolukuma mine was also severe, with output
plunging by more than 8,000 ounces compared to the previous quarter.
Cash production costs for the three months ending March 31, 2000 totalled $A428
($US249.35) per ounce, lifting the average costs for the nine months to March
2000 to $297 per ounce.
This compares to the average production cost for the year ending June 30, 1999
of only $263 per ounce.
Metal production for the three month period totalled 14,953 ounces at an average
grade of 17.35 grams per tonne - below the planned 18.5 gpt - compared to the
record 22,193 record ounces produced in the December 1999 quarter.
Dome blamed the poor quarter on the one tonne box of cyanide pellets that
dropped from a helicopter, poisoning the surrounding soil and water, as well as
to the fall in grade and poor availability of mining equipment.
The initial cyanide clean-up was completed by mill personnel, forcing the
closure of the mill for 10 days at the end of March.
Residual decontamination at the impact site, in rugged bushland around 85
kilometres north of the PNG capital Port Moresby, was taken over by a regional
exploration team and involved the removal of decontaminated soil, Dome said.
Dome expects a better June quarter following the commissioning of a new
underground dump truck and the purchase of two additional trucks and two
loaders.
"The grade in April has improved substantially and gold production has returned
to budgeted levels," Dome said.
Dome also advised that at April 28, South African gold producer Durban
Roodepoort Deep Ltd held 71.5 per cent of shares in Dome, following the launch
of its bid for the company in March.
The bid closes on May 15, 2000.
Dome shares closed unchanged at 26.5 cents. |
