Morila produced 62 594 ounces during the quarter, 19% below that of the previous quarter of 76 920 ounces, slightly below the Life of Mine plan, primarily due to the drop in throughput. 

The average received gold price of US$1 113 was slightly higher than the previous quarter of US$1 110.

Total cash costs for the quarter of US$569/oz were in line with that of the previous quarter, a good achievement given the drop in the grade of ore processed and the drop in throughput during the current quarter.

Tonnes processed for the quarter of 980 000 tonnes was 8% below the previous quarter (Q4 2009: 1 062 000 tonnes) due to problems experienced with the primary crusher shaft which had to be replaced during the quarter. Subsequently the crusher availability has been increased from 45% to 92% following the implementation of an aggressive action plan strategised by the Morila team to overcome the situation. The process plant recovery for the quarter at 91.0% was in line with the previous quarter. 

Activity on the agri-business plans, which is part of the Morila closure strategy, continued with the completion of a draft feasibility study conducted by the Ingenieurs-Conseils en Technique de Development (ICOTED) and a local Malian company Enterprice Malienne Sabunnyuman (EMAS) selected to develop a 50 hectare irrigation project. This is part of the agri-business action plan implementation to ensure sustainable development after the cessation of Morila operations currently scheduled for 2013. 

 

*   Refer to explanation of non-GAAP measures provided.

#  The stockpile adjustment per ounce reflects the charge expensed/(credit deferred) in respect of stockpile movements during the period divided by the number of ounces produced.  The total cash cost per ounce include non-cash stockpile adjustments.


Mineral reserve update

The mineral reserve base for Morila as at end of 2009 is tabulated below with a comparison to figures at the end of 2008: