WGE Holdings Corp, which is to be renamed Consolidated Gold Holdings, has acquired an additional site to be operated in conjunction with its existing gold mining properties in Sulawesi. Monthly production of up to 2.5kg from this new operation is scheduled to commence in October.
The newly acquired mining operation, based in West Sulawesi, has a reserve area of 10 hectares and utilises heap leach technology through a series of smaller leach pads, which have a comparatively lower operating cost per ounce of production than the company’s existing leaching facilities.
The US-based company recently completed the process of reorganisation and integration following its acquisition of an established and operational gold production platform in South East Asia.
Prior to the latest acquisition the company operated two independent gold production facilities in northern Sulawesi with a total reserve area exceeding 60 hectares, and monthly production capacity of 15kg, or about 500 ounces, of 99% pure gold.
Gold is processed through an established cyanidation-based gold processing facility, including more than 40 ball mills, five flotation tanks, state-of-the-art tailing facilities, on-site gold smelting, and administration and office buildings.
This operation complements the company’s heap leaching facility operating off a 3500-tonne capacity leach pad, which was recently upgraded with a state-of-the-art carbon filtration plant, new plumbing and water supply and office facilities.
The gold operations are in a high grade volcanic hosted ore deposit which stretches in an arc across the northern part of Sulawesi, an area originally surveyed and exploited by Newmont Mining.
The existing Indonesian gold operations generated revenue of US1.02 million in the June quarter compared with $279,000 for the preceding seven months since the company’s inception. Net profit for the quarter was $422,000 compared with $65,000 for the preceding period.
WGE chairman Herbert Adamczyk said, “I am very pleased to be able to report an inaugural profit for our recently acquired gold production operation. As we continue the process of increasing output at our existing facilities and bringing new production on stream, we anticipate continued healthy increases in revenue and profit for the remainder of the year.
“We believe uncertainties in the global economy will underwrite continuation of the upward pressure on the gold price, which has increased by 25% during the past six months. Our operations enjoy a very low production cost of approximately $500 per ounce.”