Oz Minerals Records Strong Prominent Hill Gold Results

Oz Minerals posted an increase of one-third in gold production for the first quarter of 2010 beating expectations at its Prominent Hill copper-gold mine in South Australia.

Prominent Hill produced 41,572oz of gold in the quarter compared to 30,526oz produced in the first quarter of 2009.

The mine is now expected to produce between 110,000 and 120,000oz a year until 2012, up by at least 30,000oz of gold.

Oz Minerals said the increase in gold production was due to mining and the treatment of higher grade gold ore, when this was not originally planned.

However, copper production went down by 4,588t from 36,497t produced in the corresponding period in 2009.

The mine also produced 202,017oz of silver in the quarter, down from 339,937oz in the first quarter of 2009.

Oz Minerals said production at Prominent Hill is expected to be lower for the remainder of the year due to a decline in head grade.