4,006 ounces of gold and 2,200 ounces of silver produced / Revenues amounting to AUD 5.162.155
Heidelberg. Production successfully started in the Georgetown gold mine in the first quarter of 2011. In total, 4,006 ounces of gold and roundabout 2,200 ounces of silver have been produced. Thereof, 3,651 ounces of gold and 2,042 ounces of silver have already been sold. The average sales revenue of the gold was AUD 1,393/ounce (corresponding to EUR 1,017/ounce). In total, revenues amounted to AUD 5,162,155 (EUR 3,768,373) in the first quarter. Deutsche Rohstoff Australia, a 100 per cent subsidiary of Deutsche Rohstoff AG, expects a production of 20,000 ounces of gold for the whole fiscal year. With an anticipated sales price of AUD 1,400 (EUR 1,022) per ounce, this equates to a revenue of AUD 28 million (EUR 20.4 million).
In March, the full production target was reached with an output of 8,000 tons of ore and a recovery of 1,812 ounces of gold for the first time. The full output could not be reached in January and February due to set up and optimisation works necessary in the ramp-up phase. The recovery, i.e. the percentage of gold that could be dissolved and separated from the ore, reached 88.8% per cent in March.
Dr Titus Gebel, CEO of Deutsche Rohstoff AG, commented: „A ramp-up phase of only two months is an exceptionally short period of time in the mining industry. Moreover, the actual recovery rate turned out to be higher than initially anticipated – a remarkable achievement by our Australian team under the leadership of Gus Phillips.”
After official mine opening on 11 January 2011, the processing plant increased the output bit by bit. The optimization of the process was made under operating conditions, especially with regard to the amount of reagents used and oxygenation. In January and February each months roundabout 5,000 tons were processed and 1,071 resp. 1,123 ounces gold produced.
In this phase, low-grade waste material (approx. 1 gram of gold/ton) was added to the high-grade gold ore from the open pits “Red Dam“ and “Electric Light“. In the beginning of February, the plant was closed for four days due to cyclone Yasi but operated without disruption for the rest of the time. Since March the optimized plant is producing the targeted output of 8,000 tons/month. The average gold content increased from 6.98g in January (at a recovery rate of 80.1 per cent) to 8.04g in March (at a recovery rate of 88.8 per cent).
The Perth Mint, Australia (www.perthmint.com.au) purchases the raw gold bars produced in Georgetown. The traditional gold smeltery and mint credits the delivered gold ounces to Deutsche Rohstoff Australia’s metal account within three days. After that, the gold can be sold at the current spot price in different currencies at any time. The transport and melting costs amount to only 0.5% of the gold value.
Deutsche Rohstoff AG (Heidelberg, Germany), listed in the Entry Standard segment of Frankfurt Stock Exchange, is establishing a new primary producer. The company’s focus is placed on gold, oil/gas and so called high tech metals such as tin, tungsten and rare earth elements. All projects are located in countries marked by political stability, the core area being Germany. The business concept is based on redeveloping deposits which have been well explored in the past. Production has started in January 2011 in Georgetown/Australia. For more information please visit www.rohstoff.de.
Heidelberg, 18 April 2011
Dr. Thomas Gutschlag
Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24, 69117 Heidelberg
Tel. (06221) 87 100-0
Fax (06221) 87 100-22
Koppelstätter Kommunikation GmbH
Friedrichstraße 2, 76530 Baden-Baden
Tel. (07221) 97372 11
Fax (07221) 97372 22