Highland Gold Mining (HGM:LSE)
The company achieved production in the upper half of guidance for 2016. Gold and gold equivalent production for the year was 261,159 oz, this compares to 262,495 oz for 2015. The slight decline in production could be attributed to the treatment of low-grade ore stockpiles (-1 g/t) at Belaya Gora during Q3 and Q4, whereby the average grade produced was 1.21 g/t for 2016, compared to 1.64 g/t for 2015. Production for Q4 2016 was 60,237 oz versus 70,377 oz in Q4 2015. Total production of gold and gold equivalents for 2017 is expected to be 255k – 265k oz. Exploration activities resulted in 758.2k tonnes of ore being booked over the course of 2016; the programme will continue in 2017.
Contractors began work on a definitive feasibility study (DFS) for Kekura in Q4, and exploration results for 2016 were compiled for an updated JORC expected in Q1 2017.
The Life-of-Mine model for Mnogovershinnoye (MNV) was extended, based on ongoing exploration and reserve calculations to at least 2021; an updated JORC reserve is in progress with results expected by Q2 2017.
The expansion project for Novo continues with a design package now under development and scheduled to be submitted for approval in early Q2 2017. The target ore processing capacity of 1.3 mtpa is expected to be achieved in late 2018.
In an effort to boost recoveries at Belaya Grora mill, the company is working with SRK on a design for additional cyanide leach capacity; the results of a review of the flowsheet are expected in Q1 2017. A new JORC-compliant reserve statement for Belaya Grora is also being worked on by SRK, it is expected by April 2017.
Pumping is set to continue throughout 2017 for the Taseevskoye open pit, initiated in May 2016. Pumping resulted in the removal of over 2 million m3 of water out of a total 7 million m3.
An updated pre-feasibility report on Klen is expected in Q2 2017.