Archipelago Resources PLC 2012 Production Results for Toka Tindung Gold Mine (1636W)

TIDMAR.

RNS Number : 1636W

Archipelago Resources PLC

23 January 2013

23 January 2013

AIM: AR.

Archipelago Resources plc

("Archipelago" or "the Company")

Archipelago achieves 2012 full year production targets

Archipelago is pleased to release its production results for the Toka Tindung Mine in North Sulawesi, Indonesia for the year ended 31 December 2012 ("FY 2012").

HIGHLIGHTS

Production

-- Achieved FY 2012 production of 139,012 Au Eq oz at a cash cost of $635 per oz (net of silver credits), meeting both production and cash cost guidance set for the first full year of operations.

-- For the three months ended 31 December 2012 ("Q4 2012"), Archipelago set a quarterly production record of 42,302 Au Eq oz.

-- Sustained robust Au head grades throughout 2012 with a 2.79 g/t Au Eq oz average (FY 2012: 2.62 g/t Au oz; Q4 2012: 3.13 g/t Au oz).

   --     No Lost Time Injuries reported for 2012. 

2013 Guidance

-- For the year to 31 December 2013, Archipelago expects to produce between 140,000 and 155,000 Au Eq oz at a cash cost of between $620 and $680 per Au oz.

COMMENT

Commenting on the result, Marcus Engelbrecht, Managing Director and CEO, said:

"The production result we achieved during 2012 is pleasing, particularly as this is Archipelago's first year at full production. We not only delivered against our initial guidance on production, but did so at a cash cost well below that of many industry peers. This positive result is a testament to the quality of the Archipelago team, and I am confident that we can continue to meet our operational targets and sustain a superior performance at our Toka Tindung Mine into 2013."

DETAILS

For FY 2012, Archipelago recorded production of 139,012 Au Eq oz (and 42,302 Au Eq for Q4 2012), meeting guidance expectations. Cash costs were $635 per oz (net of silver credits) and also within guidance. Archipelago provides the following summary of production results for FY 2012 and Q4 2012:

 
Category                          FY 2012    Q4 2012 
-----------------------------  ----------  --------- 
Ore Mined (T)                   2,744,116    777,505 
-----------------------------  ----------  --------- 
Waste Mined (T)                15,488,415  3,636,717 
-----------------------------  ----------  --------- 
Total Mined (T)                18,232,531  4,414,222 
-----------------------------  ----------  --------- 
Ore Processed                   1,738,197    446,953 
-----------------------------  ----------  --------- 
Strip Ratio                          5.64       4.68 
-----------------------------  ----------  --------- 
Head Grade for Au (g/t)              2.62       3.13 
-----------------------------  ----------  --------- 
Head Grade for Ag (g/t)              9.11       9.65 
-----------------------------  ----------  --------- 
Process Recovery Rate (%)           90.3%      90.9% 
-----------------------------  ----------  --------- 
Gold Ounces Produced (Eq oz)      139,012     42,302 
-----------------------------  ----------  --------- 
 

The average head grade for gold equivalent ounces was 2.79 g/t for FY 2012 and 3.31 g/t for Q4 2012.

As anticipated, FY 2012 production was greater in the second half of the year, with the Company mining the near surface high grade ore deposits of Kopra and Pajajaran (in addition to on-going activities at Blambagan and the main Toka pit). As a consequence, the strip ratio has declined as the year has progressed (FY 2012: 5.64:1; Q4 2012: 4.68:1). Mining will continue in these higher grade deposits during 2013 and the Company expects to sustain, or exceed, current production levels over the short term.

For FY 2012, the processing plant operated broadly in line with nameplate capacity and recovery rates remained relatively constant over the period (FY 2012: 90.3%; Q4 2012: 90.9%). In line with new guidance, it is anticipated that processing throughputs will be higher in 2013 (notwithstanding planned maintenance to occur in the first quarter).

Overall, Archipelago is encouraged by the performance of the Toka Tindung Mine, which operated broadly within mine planning and operational metrics for its first full year of operations; enabling the Company to achieve guidance and remain relatively low cash costs compared to peers. For 2012, the Company also reported no Lost Time Injuries.

2013 Guidance

Archipelago expects to build on the FY 2012 performance over the course of the current year.

For the year to 31 December 2013, Archipelago expects to produce between 140,000 and 155,000 Au Eq oz at a cash cost of between $620 and $680 per Au oz.

Conference Call

A conference call will be held for analysts and investors at 9:30am (London time) today and access can be obtained via the following details:

   UK free call:                  0808 238 0673 quoting the ID code 89856020 
   International dial in:        [phone] quoting the ID code 89856020 

FURTHER INFORMATION

 
 
   Archipelago Resources 
   plc 
   Vice President - Corporate 
   Affairs                                                                 [phone] 
   Matthew Salthouse               [phone]                            8000 
------------------------------  ----------------  ----------------------  ------------ 
                                                   Canaccord Genuity 
                                                    Limited 
                                                    Joint Broker 
                                                    Rob Collins 
                                                    Andrew Chubb 
------------------------------  ----------------  ----------------------  ------------ 
 Grant Thornton Corporate 
  Finance 
  NOMAD 
  Gerry Beaney                   [phone] 
  David Hignell                   5100 
------------------------------  ----------------  ----------------------  ------------ 
                                                   Liberum Capital 
   Buchanan                                         Limited 
   Corporate Communication                          Joint Broker 
   Bobby Morse                     [phone]      Michael Rawlinson      [phone] 
   Gordon Poole                    5000             Christopher Kololian    2000 
------------------------------  ----------------  ----------------------  ------------ 
 

ABOUT ARCHIPELAGO

Archipelago is a producing mining company listed on the AIM market of the London Stock Exchange. Archipelago's vision is to grow into a respected and regionally dominant mid-cap gold producer, managing a portfolio of gold mines and delivering significant value and returns for our shareholders. Archipelago's principal activities are gold mining and exploration in Indonesia (as the 95% owner of the producing Toka Tindung Gold Mine in North Sulawesi, Indonesia).

This information is provided by RNS

The company news service from the London Stock Exchange

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