ONGOING unreasonable rainfall and service provider disputes have resulted in lower gold production for the third quarter of this year at New Guinea Gold Corp’s (NGC) Sinivit mine.
While the result was “disappointing”, it was not unexpected due to reduced equipment availability and high unseasonable rainfall.
For the quarter ending Sept 30, the company was only able to produce 1,857.7oz gold and 344.5oz of silver, according to company chief executive Robert McNeil.
However, he is optimistic of a better run before year-end and into next year, with the additional “off road” equipment and larger excavator that the company has acquired.
“The reduced gold production was disappointing, but not unexpected in view of the reduced equipment availability and high unseasonable rainfall.
The additional “off road” equipment and larger excavator should result in increased gold production by end of fourth quarter 2009 and into 2010.
Mr McNeil said NGC was operating the equipment itself under a purchase/part lease arrangement with an Australian lessor, and it was seeking to convert this arrangement to a formal leasing arrangement with a Papua New Guinea leasing group.
“If this is successful, we would expect the capital we have already invested in this machinery to be refunded to the company,” he said.