Last Updated : 15 June 2009 at 18:10 IST

Record gold output for Olympus in Vietnam

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Commodity Online
HANOI: Following the rise in Gold prices during the recession period, gold minig companies are stepping up their production across the world.

After several South African companies reported a rise in gold output in the first quarter of 2009, Canadian gold mining giant Olympus Pacific Minerals said that its Vietnam operations yielded record output in May since the company started exploration in 2005 in Vietnam.

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Gold output last month totaled 2,574 ounces, up 3 per cent from 2,494 ounces in April, Toronto-based Olympus Pacific said.

According to a press note, output in the first five months of the year amounted to 7,760 ounces, compared with the 11,191 ounces reported for the whole of 2008.

Accelerating production at Olympus Pacific’s operations may buoy the optimism of other companies hoping to mine in the country, including Asian Mineral Resources, Triple Plate Junction Plc and Zedex Minerals.

Olympus’ production year-to-date is about 20 per cent ahead of its plan.

Olympus Pacific, the first Western miner to produce in the country since a series of failed attempts in the 1990s, anticipates producing at least 6,650 ounces per month of Gold by the end of 2011.

Olympus is producing and exporting gold from its Bong Mieu Gold Plant located in central Vietnam approximately 100 km from the port city of Da Nang. The company will continue to develop its core properties, Bong Mieu and the high-grade Phuoc Son Gold Property.

Both properties are presently producing and have established NI 43-101 resources. Olympus’ primary focus is to generate internal cash flow from increased gold production through its processing facility at Bong Mieu. These production goals will be achieved by toll treating high-grade Phuoc Son ore, improving our gold recovery and lowering productions costs. Proceeds from these efforts will be used for the further development of the Bong Mieu and Phuoc Son Gold Properties.

Olympus is producing and shipping gold from its Bong Mieu Gold Plant and plans to increase exports steadily over the next several months contributing to internal cash flow.