18 Jul Leagold delivers strong production in Mexico amid optimisation programme
Leagold Mining (TSXV:LMC) reported strong Q2 gold production from its recently-acquired Los Filos mine as it continues to optimise the project.
The Mexican mine produced 89,983 ounces (oz) gold in the six months ending June 30, including 43,980oz following Leagold’s purchase in April, which CEO Neil Woodyer said represented good progress on the development programme.
Woodyer is leading optimisation at Los Filos which he hopes will result in ‘significant and sustainable cost savings’, including an expansion project for an additional underground deposit at Bermejal.
“When we acquired Los Filos three months ago, we anticipated that it would take us approximately six months – Q2 and Q3 – to transition the mine and to operate it in the way we believed it should be,” Woodyer said.
“We also expected, that during this transition phase, we would plan the development of the Bermejal Underground mine expansion project.
“We are now half-way through this period and we have made very good progress. Furthermore, we now expect significant production and cost improvements will be reflected in the results of Q4 and onwards.”
Leagold has also commenced two capital investment projects at Los Filos, reinstalling the agglomeration drum to improve gold recovery rates and extending the overland conveyors to boost efficiency.
The Los Filos mine represents the first plank in Leagold’s ‘buy and build’ strategy as the company aims to position itself as a leading Latin American-focused mid-tier gold producer.