Mwana gold production jumps 43 per cent year-on-year

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LONDON (ShareCast) - Mwana, the Africa focused resource developer, has said that gold production in the final quarter of 2012 rose 43 per cent on a like-for-like basis to 16,506 oz.

The group said that compared to the record levels seen in the third quarter, production levels fell slightly in the final three months of the year, although remained above plan.

It also admitted that mill throughput was adversely affected by a breakdown of the primary crusher during December, but said repairs to the crusher are underway and expected to complete in the first quarter of 2013. In the meantime the run of mine feed is being diverted through a parallel primary crusher to maintain mill feed.

The Trojan min remains on track to sell first concentrate in the second quarter and the company has secured an off-take agreement in place with Glencore International (Other OTC: GLCNF - news) for the sale of Trojan concentrate.

At Zani Kodo four diamond drill rigs are continuing the work programme on site, with preparation work underway for a resource update in the current quarter.

Kalaa Mpinga, Chief of Mwana, said: "The pace of the mine preparation and processing plant refurbishment work that is currently being conducted at the Trojan mine has been exceptional.

"I am pleased to reiterate that the company remains on track to sell first concentrate to our off-take partner, Glencore International, in Q2 2013. The exploration team at Zani Kodo has been working hard, and I look forward to reporting a resource update to the market later this quarter."

The share price climbed 7.07% to 5.30p by 14:35.

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