Gold Fields' Cerro Corona mine boosts Q3 output

South African miner Gold Fields increased gold production by 6% in the third quarter as its Peruvian unit boosted quarterly production.

Gold Fields, which has operations in Peru, Chile, Australia and Africa, produced 567,000oz gold equivalent in Q3 compared with 537,000oz the previous year, the Johannesburg-based company said in a statement. All-in sustaining costs (AISC) fell 12% to US$906/oz from US$1,026/oz.

Gold Fields' Cerro Corona gold-copper mine in Peru produced 47,800oz gold and 8,452t copper in the quarter compared to 35,100oz and 7,293t, respectively, a year earlier. Output was higher due to an improvement in ore grades to 1.31g/t gold and 0.58% copper compared with 1g/t and 0.51% copper respectively, a year ago.

Gold equivalent sales jumped 43% to 89,900oz from 62,900oz a year ago, it said. Gold prices fell to US$1,274/oz from US$1,334/oz, while copper improved to US$6,301/t from 4,768/t.

AISC at the mine fell to US$629/oz gold equivalent from US$945/oz due to higher gold sales, the company said. Gold Fields hedged 8,250t of copper through December at US$5,867/t.

Gold Fields said it remains on track to meet 2017 production guidance of 2.1-2.15Moz gold equivalent, with AISC ranging from US$1,010-1,030/oz.

The company is working on a prefeasibility study for a new tailings dam to extend the life of Cerro Corona for an additional seven years through 2030. The study is expected to be finished by mid-2018. Gold Fields spent US$10mn at the mine's tailings storage facility in the third quarter.

A feasibility study for the Salares Norte gold-silver project in Atacama, Chile is also on track for completion by the first half of 2018, it said.

Gold Fields produced 2.15Moz gold equivalent last year, including 150,200oz gold and 30,667t copper at Cerro Corona.