EXPLORATION
At Sadiola / Yatela, an additional $2.2 million capitalized exploration budget was approved in Q3 2009 to complement the $14.9 million exploration program approved in May 2009. The 18 month exploration program was designed to fully evaluate the remaining oxide gold potential on the joint venture lands and undertake further investigation of potential sulphide mineralization by Q3 2010.
REcent Developments as at September 30, 2010
Attributable gold production decreased in the third quarter of 2010 compared to the third quarter of 2009 as a result of lower grades. The mine processed higher quantities of oxides in the current quarter as compared to the prior year quarter which resulted in higher throughput and recoveries. The mine continued its waste stripping effort during the quarter.
Cash cost per ounce of gold rose during the 2010 third quarter compared to the third quarter of 2009 primarily as a result of lower production from lower grades, higher energy costs, and higher royalties from higher gold prices realized.
The Company's attributable portion of capital expenditures during the third quarter and year-to-date of 2010 was $1.6 million and $5.5 million, respectively. The majority of the expenditures were for the Sadiola sulphide project feasibility study which is expected to be completed by the end of 2010.
Sadiola distributed a dividend of $14.5 million to the Company during the third quarter of 2010 (2009 – $3.8 million). In the first nine months of the year, Sadiola distributed $39.5 million to the Company (2009 – $19.0 million).
Outlook
- The current plan at Sadiola indicates a mine life to 2013, using existing oxide reserves and stockpiles.
- The deep sulphide pre-feasibility study projects an increase in production at Sadiola to between 400,000 and 500,000 ounces per year (on a 100% basis running from 2013 through 2018), with an end of mine life in 2019, increasing the total gold production at Sadiola by approximately 2.2 million ounces beyond the current mine plan.
- The Company’s planned 2010 capital expenditure for the Sadiola deep sulphide project is $4 million.
