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Unity Mining (ASX: UML) has increased gold production by 17 per cent in May to 4,930 ounces at the Henty gold mine in Tasmania.
This level of output from Henty Gold mine would rank Unity as a potential 50,000 ounces a year gold producer.
Cash costs at Henty in May were $713 per ounce gold including royalty (17% improvement), indicating a healthy cash margin for Unity based on prevailing gold prices.
The company maintained head grade improvement of 6.9 g/t gold versus 5.8 g/t gold in April. This is the fourth straight month of head grade improvement by Unity at the Henty mine.
The Henty mine produced over one million ounces of gold over a 15 year period. Unity acquired Henty in July 2009. Exploration success by Unity extended the mine life, the company is continuing to explore at its near mine tenements.
Unity expects the strong performance to continue, supported by the recent access to the high grade Newton zone discovery at Henty, which hosts a 100,000 ounce Resource open at depth.
Rod Hanson, managing director, said “the exploration upside at Newton, which remains open at depth, combined with other exciting mine and regional targets, points to a strong future for the Henty mine.”
Mine life has also been extended to four years since Unity acquired the mine. Unity acquired the Henty mine from Barrick Gold Corporation (NYSE: ABX, TSE: ABX) in July 2009.
Unity had cash of $39 million at March 31 with no debt and no hedging.
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