Proactive Investors | 7 June, 2016
Crater Gold Mining Ltd has sold the first gold from stockpiled material from its HGZ mine In Papua New Guinea since commissioning of its new gold processing plant.
The processed material was sold for $351,000 was largely sourced from stockpiled material derived from initial development work at the HGZ project.
CGN is expected to ramp up production rapidly over the next few months as new material is sourced from the higher grade material of the central high grade gold block of the HGZ mine.
The HGZ project should become a high margin operation producing 10,000 ounces of gold in the first full year of production, at a very low all-in cash cost of below $400 per ounce.
While the focus remains on the HGZ mine, there is potential to increase the current resource of 790,000 ounces gold at the nearby Mixing Zone project at Crater Mountain.
CGN had raised $800,000 earlier this year through a placement of 10 million shares at $0.08 each to new institutional and wholesale investors.