Oct. 7 News Release on Kemess production.
Royal Oak Mines Inc RYO
Shares issued 140,865,079 1998-10-06 close $1.19
Wednesday Oct 7 1998
Ms. Margaret Witte reports
Royal Oak Mines' new Kemess South gold-copper mine in North Central British Columbia has reached commercial production after meeting design criteria at the open pit mine and concentrator on separate campaigns mining and processing hypogene and supergene ore types.
Royal Oak commenced construction of the Kemess facilities in July 1996 and started limited production in the concentrator on May 19, 1998. During the hypogene ore campaign from May 19 to Aug. 14, recoveries of 86 per cent copper and 74 per cent gold were achieved when milling an average head grade of 0.194 per cent copper and 0.015 ounces of gold per ton (opt). During this campaign approximately 1.8 million tons of ore were processed from which approximately 10,600 tons of concentrate were produced assaying between 25 per cent and 26 per cent copper and between 1.3 opt and 1.7 opt of gold. Mill availability of 84 per cent was achieved in August.
The campaign mining and processing supergene ore from Sept. 7 to the end of the month produced approximately 5,800 tons of concentrate of similar grade from processing approximately 1.2 million tons of ore. The average mill head grade of supergene ore was 0.270 per cent copper and 0.021 opt gold. Recoveries of 70 per cent copper and 75 per cent gold were achieved. Mill availability was 92 per cent in September.
In the transition period between the hypogene and supergene campaigns from Aug. 15 to Sept. 7 the concentrator processed a blend of hypogene and supergene ores.
In the start-up and shakedown period from start-up in mid-May to the end of September, the Kemess South operation produced approximately 38,300 ounces of gold and 11.2 million pounds of copper contained in concentrates which are smelted and refined in the Far East to recover metal values. The Kemess South mine is designed to produce an average of approximately 250,000 ounces of gold and 60 million pounds of copper per year over a mine life of approximately 16 years based on current mineable ore reserves and planned production rates.
In 1998, the company plans to produce a total of approximately 278,000 ounces of gold at an estimated cash cost of $240 (U.S.) per ounce, net of copper byproduct revenue credit of 75 U.S. cents per pound. In 1999, production is forecast to be between 422,000 and 432,000 ounces of gold at an estimated cash cost of $190 (U.S.) per ounce, net of copper byproduct revenue credit of 80 U.S. cents per pound.
The company has built this major project and has now brought the mine to commercial production with its own team of professionals. The board of directors and senior management are proud of these accomplishments and look forward to a long low cost mine life which has turned Royal Oak into a low cost gold producer.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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