Gold Mining Heavyweights Report Growth Opportunities

Acacia Resources and Placer Pacific, two prominent gold mining companies, have highlighted growth opportunities in their respective reports for the June quarter and half. Acacia's report suggests a possible resource boost for its Sunrise Dam project in Western Australia, while Placer Pacific is nearing completion of plant commissioning at its Osborne copper-gold deposit in Queensland. Both companies are optimistic about their future prospects, with Acacia aiming to increase its annual gold production to over 300,000 ounces by 1997 and Placer Pacific targeting a first feasibility study for the Mount Rawdon gold project in the first quarter of next year.

Key Takeaways:

• Acacia Resources reported a likely resource boost for its Sunrise Dam project near Laverton in Western Australia, with high intersections grading 821 grams of gold per tonne in a two-metre intersection.
• The development of Sunrise Dam would propel Acacia's annual gold production to more than 300,000 ounces by 1997.
• Placer Pacific reported that plant commissioning at its Osborne copper-gold deposit in Queensland is nearing completion, with estimated output for the December half revised to 11,000 tonnes of copper and 24,000 ounces of gold.
• Placer Pacific is also dusting off development plans for the Mount Rawdon gold project in Queensland, with a full feasibility study underway to be completed in the first quarter of next year.
• Savage Resources reported a record $8.18 million profit in the June year, driven by earnings from its United States zinc operations and a recovery in its coal profits.
• The company has cash reserves at year end of $70.5 million, up from $61.9 million previously.
• At the 49% owned Ernest Henry project, the partners have set a target of the third quarter of calendar 1997 for first copper and gold production.
• The Undan 1 well in block ZOCA 91-12 of the Timor Sea zone of cooperation with Indonesia has flowed both gas and condensate, with a production test yielding 26.14 million cubic feet of gas per day and 1773.6 barrels of condensate per day.

Statistics:

• Acacia Resources recorded a net profit of $12.4 million for the June half, with gold production reaching 110,825 ounces.
• Placer Pacific reported a net profit of $14.9 million for the June quarter, with gold production in the June half falling from 392,664 ounces to 347,830 ounces.
• The group's listed subsidiary, Kidston Gold Mines, reported a June half profit of $2.4 million, down from $5.19 million previously.
• Savage Resources' profit for the June year was $8.18 million, with cash reserves at year end increasing to $70.5 million.
• The Undan 1 well produced 26.14 million cubic feet of gas per day and 1773.6 barrels of condensate per day during its production test.

Sources:

• Acacia Resources and Placer Pacific reports for the June quarter and half.
• Savage Resources' report for the June year.
• BHP, Santos, and Petroz news releases regarding the Undan 1 well.