Higher output powers Mupane revenues to P480m
Mbongeni Mguni | Friday May 3, 2019 12:31
Mupane Gold Mine, owned by Toronto-based junior miner, Galane Gold, produced 35,527 ounces of gold last year, compared to 29,354 ounces in the previous one.
Mupane taps into ore from deposits located near Francistown, most of them dating back to the 1870s gold rush.
According to documents filed by Galane Gold with Canadian regulators this week, Mupane’s production was highest in the second and fourth quarters of 2018 at 10,088 ounces and 9.245 ounces respectively.
Grades through the year were higher than 2018, but recoveries were lower due to variable mineralogy within the ore body and the absence of the ball mill for the entire first quarter.
Galane also benefited from higher gold prices during the year.
“The ongoing strength in gold prices and improved operating performance at the Mupane mine has had a positive impact on the company’s operating results, resulting in earnings from mining operations of $3 million in 2018 compared to $1.7 million in 2017,” Galane’s directors said.
Despite the higher production and revenues for 2018, Galane’s bottom line reflected a $321,945 loss due largely to higher foreign exchange losses and mining costs.
Meanwhile, Galane has applied for two gold prospecting licences over an aggregate of approximately 520 square kilometres located around Mupane.
“A technical team has approved an exploration programme for 2019 and it is contemplated that Galane will be in a position to report on the findings in early 2020. “The results of the 2019 exploration programme will be used by the technical team to decide on the programme for the next year,” directors stated.