Proactive Investors - Thor Explorations (LON:THX) said it is on track to meet its target of between 95-100,000 ounces of gold from the Segilola mine in Nigeria even after a slower start than expected due to plant upgrades.
Segun Lawson, chief executive, added: “We expect a stronger level of production during the remainder of the year and are tracking to meet this year's guidance of 95,000 to 100,000 ounces at an AISC of $1,100 to $1,200 per ounce.”
Spot gold prices currently are more than US$2,300 an ounce with many commentators expecting them to rise further.
First quarter 2024 production came in at 19,589oz at an average grade of 2.85 g/t with three additional CIL tanks commissioned and upgraded in March.
Drilling is continuing across all of its projects including near targets and underground at Segilola and exploration holes at the Douta and Douta West licences in Senegal.
An updated Mineral Resource Estimate and PFS at the Douta project is now expected in the second half of 2024.
Lawson commented: "In January and February 2024 the Segilola mine production was lower than expected as a result of lower recoveries from the processing plant which has been subject to implementation of final plant upgrades.
“In March, over 8,200 ounces of gold was produced which included the start of the drawdown of the gold in circuit.
"We look forward to maintaining an increased level of production for the remainder of the year in parallel with continued drawdown of the gold in circuit.
"Operating conditions in the Segilola pit also improved further over the Quarter and mining operations are continuing in-line with expectation.”
Thor had also made a "significant payment" of US$8.2 million towards its outstanding senior debt facility, Lawson noted, leaving a balance of US$15 million that it intends repay fully this year.
At Douta, a drilling programme commences this quarter and will be prioritising oxide resources.