T

he gold and silver production of mining firm G-Resources Group Ltd. at its Martabe mining site in North Sumatra, has exceeded the company'€™s expectations in the first quarter of 2014, according to a company official.

Its gold production reached a total of 64,082 ounces (oz) in the January to March period this year, higher than the 63,633 oz in the same period last year, while the company'€™s silver production reached 515,617 oz during this year'€™s first quarter, more than the 244,383 oz in the same period last year.

According to the company'€™s corporate communications senior manager, Katarina Siburian, G-Resources this year had targeted between 230,000 and 250,000 oz of gold. If gold production in each of the next three quarters equalled the amount recorded in the first quarter, total production would exceed the target, she added.

Meanwhile, she explained the company was also on track to achieve its silver production target of 2 million oz this year.

Katarina said although the production in this year'€™s first quarter was higher than the level recorded in the same quarter in 2013, gold sales in the first quarter fell to 62,689 oz from 67,897 oz in the January to March period last year.

Unlike gold sales, silver sales increased to 450,592 oz in January to March this year, from 227,402 in the same period last year.

'€œThe gold price in the first quarter reached US$1,281 per oz on average, lower than $1,636 per oz in the same period last year. Meanwhile, the silver price in the first quarter this year was $20 per oz, also lower than last year at $30 per oz,'€ Katarina told The Jakarta Post on Wednesday.

Katarina said although the company'€™s production had exceeded its target, it would continue its exploration activities at five to seven mining sites near its Purnama pit.

She added that the exploration was intended to identify sulphide and oxide content in East and South Purnama as well as in South Barani.

'€œThe exploration has been going well, we will inform about the results soon,'€ said Katarina, adding that operational costs this quarter would be kept low.

G-Resources president director Peter Albert said he was satisfied with Martabe Mine'€™s Purnama pit operational activities, in which production exceeded the company'€™s target.

He said that by prioritizing safety and environmental stability, the company would be able to strengthen its position as one of the leading mining firms in the world.

Martabe Mine is located west of Sumatra, in Batang district, South Tapanuli regency, in North Sumatra with an area of 1,639 square kilometers.

The mine has resources of up to 8.1 million oz of gold and 73.8 million oz of silver and has started production since 2013 with a capacity of 250,000 oz of gold per year and about 2 to 3 million ounces of low-cost silver. (dwa)