Production from Beadell’s Tucano mine in Brazil jumped 52.3% to 55,094 ounces of gold in the September quarter, thanks to the introduction of ore from Duckhead.
 
The carbon-in-leach plant operated about 14% above nameplate capacity at 4 million tonnes per annum, while head grade jumped 36.4% to 1.91 grams per tonne gold, with recoveries improving 2% to 93%.
 
Beadell expects the plant to reach 4.5Mtpa in the current quarter.
 
The company completed a $A1.7 million upgrade to the elution circuit to bring the gold in circuit back down to around 4000oz.
 
Duckhead contributed 30,173oz gold in August and September, 39% more than expected, and Beadell managing director Peter Bowler said the contribution was pleasing given it was only for part of the quarter.
 
“With a full quarter of production now being influenced by Duckhead, together with the gold elution circuit upgrade, exceptional cashflows are expected during the December quarter,” he said.
 
“Additionally, with Duckhead potentially yielding up to 50 per cent more gold than expected at no additional costs, the reduction of our production costs will be significant.”
 
Half-year guidance of 120,000-130,000oz gold at pre-royalty C1 cash costs of $US435-485 per ounce was left unchanged.
 
The company has not allowed for any iron ore credits, which are expected to positively impact cash costs during the current quarter.
 
Cash and bullion at the end of September was around $A34.5 million, with 8542oz gold worth $11.2 million now able to be converted into bullion with the commissioning of the elution circuit.
 
During the quarter Beadell made repayments of $20 million on its $US100 million Macquarie project finance facility.
 
Bowler told the Denver Gold Forum last month that with Duckhead expected to contribute $A150-200 million worth of revenue, the finance facility would be repaid within a year.
 
Beadell said Duckhead drilling returned a recent hit of 1m at 124.8gpt gold, and preliminary grade control measures indicate that the Duckhead Hangingwall lode, which will be mined from this month, could contain 61% more ounces than its 71,000oz reserve.
 
The company believes Duckhead is one of the world’s most profitable open pits.
 
“This is what happens when you get lucky – there is no skill in this,” Bowler said last month in Denver.
 
“You can’t do anything other than make an obscene amount of money.”
 
Beadell shares gained 1.8% to 84c this morning.