Gold Fields contemplates underground production

Tarkwa, May 2, GNA - Gold Fields Ghana has said it is examining its underground potential to assess the viability of underground operation within the Tarkwa and Abosso area.

The Acting General Manager, Mr Ludwig Eybers said underground resources would be fully exploited depending on several factors including the world market price of gold and the cost of underground production.

Mr Eybers was briefing journalists on Thursday during a tour of the mine to acquaint them with current developments and projections. The underground project, he said, could be after the initial lifespan of the open cast operations, adding "we are looking at beyond 15 years".

The Company is currently mining ore stretching about 10 kilometres part of which had previously been mined and which yields 1.3 grams of gold per tonne.

The Company with proven ore reserves of 13.4 million ounces of gold on its Tarkwa mine, the larger of the two it operates, plans to double capacity of its mill at Tarkwa and cut down mounting costs. The Company also operates another mine at Damang.

On exploration, the Company intends to commence drilling of the Pepe North Pit in the first quarter of 2007 followed by geotechnical and structural analysis boreholes.

Gold Fields Ghana Limited is owned by Gold Fields Limited (71.1 per cent) and IAMGold, a Canadian company listed on the Toronto Stock Exchange (18.9 per cent), with 10 per cent Ghana Government "free carry" interest.

Mr Eybers said Gold Fields Ghana was conducting studies for expansion of the mill since the recovery rate was higher. Ghana Gold Fields currently operates cash cost per ounce of 300 dollars with increasing bills on costs of inputs such as diesel, cement and cyanide.

Officials told the GNA that the company was aiming at 700,000 ounces of gold at the Tarkwa mine in 2006, with Damang expecting some 200,000 ounces over the same period.