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Apex Minerals undertakes work at Wiluna gold mine to boost gold production

Published: 03:40 25 Aug 2009 EDT

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Apex Minerals (ASX: AXM) has largely completed geotechnical work at the Wiluna gold mine, that was instigated to remedy the adverse ground conditions described in the June Quarterly report.  

The changes have taken longer than expected. During the ramp up of gold production recorded at the end of the March quarter, 29,000 ounces of gold were produced.

The company has implemented significant strategic, organizational and procedural changes in respect of underground mining aimed at ensuring the company meets its stated production targets.

Apex has appointed a new general manager at Wiluna, Rod Jacobs, and has undertaken a comprehensive review and is implementing a program to increase the efficiency of its Wiluna operations. This program includes the geotechnical measures discussed above, to ensure safe long-term sustainable production, and also covers every aspect of mining, including overall strategy, procedures, work practices and the organisational structure.

Apex produced 6,400 ounces of gold in July, although gold sold in July was approximately 10,400 ounces, as a result of additional gold being recovered from the base of the BIOX reactors, as described in the June Quarterly report. Production for August is expected to be approximately 7,000 ounces.

To increase long-term operational flexibility, the breadth of production sources, and the ability to mine specific zones in a way which maximizes value, the company is reviewing a number of additional mill feed opportunities, including commencement of mining of the Wilsons orebody at Gidgee.

Apex managing director Mark Ashley said the changes will ensure the company meets its phase two production target of 12,500 ounces per month while maximising efficiencies and minimising costs. However, the time required to complete the implementation of the review’s findings means this higher target is now likely to be achieved by April next year rather than late this year.

In the meantime, the company’s gold production is expected to build up over the coming months and is forecast to average 10,000 ounces per month until the commencement of ore production from the Wilsons deposit around April of next year.

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