SMM, Jan. 18: (Turquoise Hill Resources, TSX:TRQ, owner and operator of (Oyu Tolgoi copper mine), a closely watched Oyu Tolgoi copper mine in Mongolia, said The copper and gold production indicators for the last quarter of 2018 exceeded expectations.
The chief executive of Greenstone Resources said the company's operating performance was strong and that "quarterly copper production was stable and consistent with the whole year."
The price of copper is up 1.1% from 2017, while the price of gold is up 150%, and the company believes the precious metal has "significantly improved both in grade and recovery."
Compared with the fourth quarter of 2017, copper production fell compared with the fourth quarter of 2017, with some of the decline offset by higher grades and recovery.
The copper grade in 2018 was 0.51%, the same as the average for the whole of 2017, but the copper grade in the fourth quarter was the highest, at 0.55%, and the copper grade in the second quarter was the lowest, at 0.48%.
Greenstone Mountain Resources also released operational guidance data for 2019, which aims to produce 12.5-155000 tons of copper and 18-220000 ounces of gold as the project continues to be developed by the end of the year.
"in 2019, underground horizontal development is expected to advance 15 to 16 kilometers."
Greenstone Resources also reported that it was conducting a study to determine the costs associated with signing an agreement with the Mongolian government last month.
The agreement provides Greenstone Resources with a framework for building a long-term energy source for the mine-its long-standing and dramatic relationship with (Ulaanbaatar) in Ulaanbaatar. Ulaanbaatar holds a 34 per cent stake in the mine.
The Oyu Tolgoi mine is currently undergoing an underground expansion worth $5.6 billion and is expected to produce 560000 tons of copper a year from 2020.
