The company, which will now not be required to enter into gold hedging, said that the loan provided it with additional flexibility and allowed it to conserve cash that would have otherwise been applied to the project redevelopment or consider increasing regional exploration activities.
Refurbishment and redevelopment activities at Gold Ridge are ongoing with key items ordered and commissioning activities expected to commence in the March quarter of 2011. The redevelopment of the 120,000 oz (ounces) mine is expected to cost A$150 million.
Allied Gold acquired the Gold Ridge project in late 2009 through the acquisition of TSX-listed Australian Solomon Gold. Pre-development works are currently underway with production of 120,000 ozpa (ounces per annum) expected in 2011. The current mine plan is for 943,000 ounces to be recovered over a 7.8 year mine life.
Gold Ridge was acquired via the takeover of Australian Solomons Gold Limited (ASG). A feasibility study update released in February 2009 estimated operating costs at US$468/oz and a capital cost of US$110 million. The study was based on a recovered resource of 870,000 oz and a life of mine production of 124,000 oz pa (per annum).
The Gold Ridge project, whose deposit hosts a 43-101 compliant resource of 2.1Moz (million ounces) graded at 1.7 g/t (grammes per tonne) gold, produced 210,000 oz between 1998 and 2000.
http://www.proactiveinvestors.co.uk/companies/news/18145/allied-gold-secures-us35m-loan-from-world-banks-ifc-for-gold-ridge-project-18145.html
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