Canadian junior Leagold Mining has set a production target for 2019 of between 380 000 oz and 420 000 oz, at an all-in sustaining cost (AISC) of between $920/oz and $970/oz.
This guidance range incorporates the company’s first full year of contributions from the three mines in Brazil that it acquired in May 2018.
It also reflects the return to normalised recoveries and steady state operations at Los Filos, in Mexico, but does not include the recently announced expansion opportunities at Los Filos.
The company cautioned that its production guidance for the RDM mine, in Brazil, is based on a full year of operations, as the benefits of the water storage facilities and water use reduction programmes are implemented; however, in each of its previous operating years, RDM has experienced temporary shutdowns owing to insufficient water supply.
“Our 2019 outlook benefits from the many operational improvements being implemented at each site. Looking ahead, we see significant upside in the long-term production profile of the company from the restart of Santa Luz [in Brazil] and the expansion at Los Filos, which, once financed and constructed, have the capacity to take our consolidated production to more than 700 000 oz per year,” said Leagold CEO Neil Woodyer in a statement on Monday.
Leagold’s revised guidance for 2018 is to produce between 295 000 oz and 305 000 oz. It was downgraded in November from between 325 000 oz and 350 000 oz, owing to an unplanned shutdown of the RDM mine and the Los Filos mine experiencing an extended recovery cycle on the heap leach pads in the third quarter.