High price helps gold production at Sepon mine
 
MMG LXML has maintained gold production rates at its Sepon operations
in 2009, producing over 100,000 ounces of gold this year in Laos ,
helped by high international prices for the metal.
 
The gold price on the world market hit US$1,000 per ounce in mid
September and for a short period earned US$1,100 per ounce last week.
 
“Higher gold prices have meant that we are able to treat lower grade
ore gold from further away from our processing plant and still remain
profitable.
 
“Treating lower grade ore is more expensive, but while prices are high
we are able to do so effectively,” said Richard Taylor, Group Manager,
Corporate Affairs for Asia .
 
According to production figures released in the company's quarterly
reports, in the first three quarters of 2009, gold production in
ounces was 26,423, 29,306 and 19,679 ounces respectively.
 
In October, the Sepon gold operation was able to produce 6,833 ounces
of gold, making the production of gold in the year to date 82,241
ounces.
 
The operation's plan for producing gold in 2009 is still on track for
a full year result of over 100,000 ounces.
 
“The gold oxide operation when it was first planned was only expected
to last for 5-8 years.
 
“The high gold price and large investment in exploration has helped
extend the operating life. In the long term we hope to look at
treating different types of gold ore, known as primary gold, to add to
the copper and gold oxide operations,” said Mr Taylor.
 
The Sepon operation produces gold doré bars which are a mix of gold,
silver and other metals.
 
The gold bars vary in purity from 60 percent to 90 percent depending
on the amount of silver present within the ore.
 
In order to achieve the 99.999 percent desired for jewellery
production, the bars are sent overseas for refining.
 
Minerals and Metals Group (MMG) recently announced its commitment to
develop three major projects, hoping to increase production capacity
and the value of current assets.
 
MMG will invest US$60.4 million to expand production capacity at the
Sepon copper operations in Laos and US$3.7 million for design and
construction of a flotation desliming circuit at Sepon to improve
pyrite recovery.
 
It will also inject US$24 million to design and construct a new
tailings storage facility at Golden Grove in Western Australia .
 
These projects support MMG's vision to build a leading global minerals
and metals business.
 
The copper expansion project will increase annual copper cathode
production at Sepon from around 65,000 tonnes to a nameplate capacity
of 80,500 tonnes.
 
The Sepon copper and gold operation comprises a 1,250 square kilometre
contract area located approximately 40 kilometres north of the town of
Sepon in Savannakhet province, central Laos .
 
Gold production at Sepon commenced in December 2002 and copper in
early 2005.