By YEHIURA HRIEHWAZI
SIMBERI gold mine in New Ireland province has discovered new high grade gold deposits that are expected to pump up production to 200,000 ounces a year from 2012.
At current gold prices, this junior miner is expected to rake in over US$200 million (K540 million) annually.
The good news is also expected to shoot up the company’s share prices and its total capitalisation.
The mine, wholly owned by Allied Gold of Australia, is located on Tabar Island.
The mine which recently made news headlines for the wrong reasons – a government-ordered shutdown over health, safety and welfare issues – had resumed production two weeks ago.
Its current production is 75,000oz to 80,000oz a year.
Information released to the stock markets last Friday said Simberi gold mine was on track to deliver in excess of 200,000oz a year after reading high grade samples from diamond drill cores at its Pigiput deposit which is part of its ongoing 17,000m drilling programme that is nearing completion.
A resource/reserve upgrade will follow, underpinning a minimum 100,000oz per annum sulphide expansion pre-feasibility study which is due in coming months.
Allied Gold executive chairman Mark Caruso said last Friday that the results were an integral part of the oxide and sulphide studies aimed at lifting gold production from the current 75,000-80,000oz per annum in excess of 200,000oz per annum in 2012 from both Simberi’s oxide and sulphide ore open-pit sources.