Today, gold miner and lithium developer Firefinch [ASX:FFX] released an update on gold production at their Morila Gold Mine.
Located in Mali, Firefinch first acquired the gold project in late 2020 for US$28.9 million. In the last 22 years, the project has produced over 7.5 million ounces of gold.
Firefinch hits production guidance in first quarter of 2022
In the first quarter of 2022, Morila produced 10,874 ounces of gold, well within their original guidance of 10,000–11,500 ounces.
The company is now getting a production boost from the N’Tiola deposit, where Firefinch started mining operations on 31 March, six weeks ahead of schedule. N’Tiola is the fourth mining area the company has opened after Morila Pit 5, Viper, and the Morila Super Pit.
In the second quarter of 2022, the company expects to produce between 17,000 and 20,000 ounces of gold.
But Firefinch expects most of its gold production increase to come in the second half of 2022, with production forecasted to hit 30,000–35,000 ounces of gold in the third quarter and 36,000–40,000 in the fourth quarter.
Firefinch’s Managing Director, Dr Michael Anderson, said:
‘After a year in the role as Managing Director, I am very pleased to report we have delivered on our plan of transitioning from tailings reprocessing to hard rock mining.
‘We are on the brink of benefitting from the mining of the Morila Super Pit and N’Tiola, both of which have commenced ahead of schedule. We are confident to maintain our 2022 production guidance for Morila at 100,000 ounces of gold and it is exciting to look forward to annualised production rates in H2 2022 in excess of 140,000 ounces.’
What’s next for Firefinch?
Anderson said they are updating the Life of Mine Plan and increasing drilling to test the potential of Morila and its satellite ore bodies.
Even though news was good, shares fell after the announcement. At the time of writing, shares for Firefinch are down 3.74%, trading at $1.03.
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Regards,
Selva Freigedo,
For The Daily Reckoning Australia
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