CASTLEMAINE Gold-fields’ Ballarat mine has been described as almost “immune” from sharemarket turmoil plaguing its parent company overseas.
The mine has just achieved its best ever result, producing more than 13,000 ounces of gold over a three-month period.
The result comes as parent company Liongold Corp battles heavy stock market pressures in Singapore after being suspended from trade earlier this month.
Shares in Liongold Corp have been placed in trading curbs after a volatile two weeks.
On October 4, the Singapore exchange (SGX) suspended trading for Liongold and two inter-linked companies after sharp falls in their share prices.
Liongold’s suspension was soon lifted, but trading curbs were put in place on October 6.
Speaking from Singapore this week, Liongold’s chief operating officer Matthew Gill told The Courier the Ballarat mine’s production would not be affected by the stock market volatility.
“It’s business as usual at all operations,” he said.
“We’ve got three drill rigs underground at Ballarat and we’ve got one above ground at Tarnagulla, north of Ballarat.”
Liongold announced on October 11 that Castlemaine Goldfields’ Ballarat mine produced a record 13,845 ounces of gold – a 47 per cent increase in gold production on the previous quarter.
The company says its financial year target is between 40,000 and 50,000 ounces.
Mr Gill said the company was now looking at achieving a financial year result in the “upper end” of that range.
Gavin Wendt, a resources analyst with MineLife, said he believed the Ballarat mine was shielded from the difficulties plaguing its parent company.
“It seems the Ballarat operation remains profitable and is doing quite well,” he said.
“I think the Ballarat operation is immune to what’s going on with Liongold on the stock market.”
Castlemaine Goldfields was purchased by Liongold Corp in 2012, and in that yearthe mine produced $43.4 million worth of gold revenue in its first full year of operation by Castlemaine Goldfields.
The mine is 18 kilometres long, with its main lode, the Mako Lode, located under Llanberris.