TSX-listed RNC Minerals has set its production guidance for the year at between 90 000 oz and 95 000 oz of gold.
The company did not include expected contributions from its Beta Hunt mine, which will only start producing gold later this year.
"Our 2020 guidance reflects a continuation of the consistent production we achieved in the second half of 2019. However, our guidance does not include contribution from high-grade coarse gold production from the Beta Hunt mine. With this in mind, we believe there is upside to our production and cost guidance that we will be able demonstrate as the year progresses,” CEO and chairperson Paul Huet stated.
Since acquiring the Higginsville mill, in Australia, in June last year, the company has focused on improving its cost profile companywide. This initiative will continue as a priority in 2020.
“With targeted quarter over quarter cost reductions, we expected all-in sustaining costs to trend towards our target of $1 000/oz by the end of the year,” Huet said.
With a large portion of RNC’s 1 800 km2 Higginsville property having been unlocked for aggressive exploration for the first time in seven years – owing to the royalty renegotiation in December – the company had prioritized a list of strong targets for 2020.
“Recent results from our exploration and grade control drilling across the property have been encouraging, and we look forward to advancing these targets during the year,” Huet noted.
Meanwhile, with the company’s Baloo deposit continuing to grow, the Stage 1 pit life has been extended to mid-year 2020, followed by Stage 2 mining which is expected to continue for the balance of 2020.
“Our pipeline of openpits is delivering, with results from Fairplay North, our second openpit, having shown some very good high-grade results to date. Last year was a transformational year for RNC and its shareholders. We look forward to an even stronger 2020,” Huet said.