As reported earlier this month, gold production for the first full quarter of operations was 12,836 ounces.
While the 2.4 million tonne per annum mill reached nameplate capacity during the quarter, the head grade of 0.78 grams per tonne was lower than the expected 1.01gpt due to lower mining rates as a result of labour availability and COVID-19.
Recoveries averaged 98%.
Reeves said there had been improvements this month, with predicted mill feed grade reconciliation substantially improved at 10% dilution in line with industry standards.
Mining contractor Macmahon Holdings is on track to exceed forecast ore production by 20,000 bank cubic metres for the first time in October.
Reeves estimates October production of 4000-5000oz of gold.
“We’re back on track to a large degree,” he said.
He said operations “almost washed their face” in the September quarter.
Reeves said December quarter production would still be “below par”.
“We hope to make some reasonable cash in the current quarter,” he said.
Reeves said the company would declare commercial production when it was appropriate to do so.
Warrawoona is being billed as a 90,000oz per annum producer.
“That is still, we believe, imminently achievable, and just around the corner,” Reeves said.
All-in sustaining costs were forecast at A$1290 an ounce in the definitive feasibility study.
Mining costs are up 20% to $12/BCM due to the rise in fuel and explosives prices.
Processing costs of $15 per tonne are on budget.
Administration costs have more than doubled from $2/t milled to $4.76/t due to increased COVID-19 compliance and higher flight costs.
Overall, costs have increased by 18%, or $1.6 million, compared to DFS forecasts.
With that in mind, Reeves said targeted AISC was $1550-1600/oz.
“I think that’s a fair number to look at,” he said.
Cash and bullion at September 30 was $29 million and Reeves said there was no plan to raise further equity.
Debt stood at $107 million.
