Pickstone-Peerless gold production down 11pct in Q4

Pickstone-Peerless gold production down 11pct in Q4

BULAWAYO, February 21 (The Source) – Gold production at Pickstone-Peerless mine in Chegutu dropped by 11 percent to 4,356 ounces in the fourth quarter ending December 2016 due to increased rains that disrupted mining and milling operations.

In a quarterly production summary released on Tuesday, London-listed Vast Resources (formerly African Consolidated Resources), which owns 50 percent of the mine, said ore mined also fell six percent to 61,355 tonnes compared to the September figures of 65,573 tonnes

“The period also saw severe weather impact our operations in Zimbabwe, where unusually high rainfall in December and January resulted in lower milling and production at the Pickstone-Peerless Gold Mine,” said Roy Pitchford, chief executive of Vast Resources.

“Despite the operational challenges experienced during the period, the mine still delivered production of 4,356 ounces of gold at an impressively low cost of US$619/oz versus an average sales price of US$1,231/oz.”

He added that production has now returned to normal levels and the company was now optimistic about future production.

In January, the company announced that it would sell nearly half of its shares in Pickstone-Peerless to a Mauritian investment company for $4 million to minimise exposure to Zimbabwe’s economic uncertainty.