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Operations
Ghana
Mauritania
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GuidanceThe Company achieved record production of 111,193 oz in the fourth quarter of 2009 resulting in full year production of 342,085 oz, a 31% increase over 2008 production. Cash operating costs for the financial year are being finalized but are expected to be in line with forecast.Following the completion of major plant expansions at both Chirano and Tasiast, production at both projects ramped up during the fourth quarter towards projected levels for 2010. Details are set out in the table below:
For 2010, the Company is forecasting total gold production in the range of 485,000 to 525,000 oz at a cash operating cost of between $390 and $420 per oz. This is a 46% increase over 2009 production levels. Tasiast is projected to produce 245,000 to 265,000 oz at a cash operating cost of between $325 and $350 per oz. Capital expenditures at Tasiast are budgeted at $48 million, excluding exploration. Exploration is budgeted at $22 million for the first six months of 2010. Chirano is projected to produce 240,000 to 260,000 oz at a cash operating cost of between $460 and $490 per oz. Capital expenditures at Chirano are budgeted at $77 million, excluding exploration. Exploration is budgeted at $6 million for the first six months of 2010. Commenting on 2009 results and 2010 forecasts, Richard Clark, President and CEO of the Company stated: "We are extremely pleased with our achievements in 2009 with both CIL plants having been expanded and the Akwaaba Deeps underground mine at Chirano and the dump leach operation at Tasiast being successfully commissioned. 2010 production is now running at projected levels. This will be another exciting year for Red Back with the size of the Greenschist zone at Tasiast increasing rapidly and commencement of development of the Paboase South underground mine at Chirano. The impressive growth in resources and reserves anticipated at both mines this year will confirm the longevity of our operations at higher production rates. 2010 represents the first significant production increase for the Company following completion of the plant expansions. The addition of heap leach production from Tasiast and development of the new Paboase South underground mine at Chirano will result in further production increases for 2011, towards an annual target of approximately 800,000 oz in 2012." |
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