PRODUCTION at Castlemaine Goldfield’s Ballarat mine doubled in April and May, just prior to Singapore-based LionGold Corp launching a friendly takeover offer.
Castlemaine Goldfields managing director Matthew Gill said 22,000 tonnes were processed in the two months, which was more than twice that processed in the March quarter.
He said a Ballarat Gold Project update released last week showed production was now in line with expectation, with 5054 ounces of gold recovered from the 22,000 tonnes.
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“We’re getting good grades and good tonnages, costs are coming down and it’s all going to plan,” Mr Gill said.
He said the company was still carrying out some small regional exploration but the company’s focus had been on getting the Ballarat mine up and running.
“We had some underperformance late last year in some of the mine’s smaller areas but we’re now in the main area of the mine that we were always aiming for.
“We were focusing on getting Ballarat up and running. Ballarat has always been our core mine.”
Mr Gill said there had been no permanent job losses during the early commissioning problems and the company was now back recruiting.
Meanwhile, LionGold Corp lodged its bidder statement with the Australian Securities and Investments Commission and the Australian Securities Exchange on June 13, with Castlemaine Goldfields shareholders to receive them this week.