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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (35844)	4/21/2009 1:29:43 PM
From: LoneClone	Read Replies (1) \| Respond to of 193231

Red Back reports lower costs miningweekly.com By: Liezel Hill 20th April 2009 Updated 2 hours 2 minutes ago TORONTO (miningweekly.com) – TSX-listed Red Back Mining produced 70 408 oz of gold in the first quarter of 2008, at an average cash operating cost of $389/oz, the firm reported on Monday. For the last three months of 2008, the company reported production of 72 664 oz of gold, at a cash operating cost of $393/oz. Red Back owns two gold mines, Chirano in Ghana and Tasiast in Mauritania, as well as several projects in Ghana. In the first quarter, Tasiast produced 36 150 oz, at a cash operating cost of $271/oz. Operating costs were lower than expected, thanks to lower processing costs, the company said. Red Back estimates cash operating costs at Tasiast in 2009 to average $320/oz based on a forecast production of 230 000 oz. An expansion of the Tasiast processing facility remains on schedule and on budget, and commissioning of the facility will get under way this quarter. The development of a new dump-leach operation at Tasiast is also “substantially complete”, Red Back said, and production is expected to ramp up through the year for a total of 30 000 oz in 2009. At the Chirano mine, Red Back produced 34 258 oz of gold during the first quarter of this year, at a cash operating cost of $509/oz. Cash operating costs were in line with budget for the quarter and are expected to decline through the year as the new crushing facility and plant expansion are commissioned, the company said. A new crushing facility at Chirano was commissioned this month and a plant expansion continues as planned for commissioning in the third quarter. Red Back expects that Chirano will produce 170 000 oz this year, at an average cash operating cost of 480/oz. Shares in the company rose 9,86% on Monday morning, to C$7,69 apiece by 11:07 in Toronto.