Production
The Challenger Gold Mine has successfully met all its mining and processing targets to date, with operating costs since first production in 2002 averaging $332 per ounce. A summary of production statistics for the Challenger Mine for the past three financial years is shown below:
| 2005/06 | 2004/05 | 2003/04 | ||
|---|---|---|---|---|
| Tonnes Mined | (tonnes) | 387,585 | 155,509 | 353,422 |
| Ore Processed | (tonnes) | 375,955 | 481,965 | 431,113 |
| Head Grade | (g/t) | 9.52 | 3.12 | 4.73 |
| Recovery | (%) | 94.3 | 90.1 | 92.7 |
| Gold Produced | (ozs) | 108,080 | 43,547 | 60,757 |
| Cash Operating Cost | (per tonne) | $80.64 | $46.04 | $46.23 |
| Cash Operating Cost | (per oz) | $280 | $510 | $328 |
2005/06 was the first full year of underground production at Challenger, which saw the operation exceeding all targets with the pace of both development and production from stoping surpassing budgets in terms of tonnes and grades delivered.
Together with increased production, overall costs were contained resulting in much lower operating and capital costs for the year compared with 2004/05.
A total of 108,080 ounces of gold was produced for the 12 months to 30 June 2006 at an operating cash cost of $280 per ounce from processing 375,955 tonnes of ore grading 9.52 grams per tonne. This represented a substantial improvement on last year’s performance, as reflected in the table above. Average recoveries through the Challenger plant averaged 94.3% compared with 90.1% last year.
Capital expenditure for the year totalled $10.99 million, including decline and access development, principally within the M1 Shoot, as well as the installation of other underground and surface infrastructure to support production.
From the start of production in October 2002, a total of 250,363 ounces of gold had been recovered by 30 June 2006 at an average operating cost of $332 per ounce. This was achieved from processing a total of 1,586,865 tonnes of ore.
Throughput rates for underground ore have stabilized at between 1,000 and 1,100 tonnes per day.(Return to top of page)