Since 2014, the ramp-up of Tau Underground has transformed Galane Gold's (V:GG) Mupane mine, increasing mined grade and lowering cash operating costs to average just US$871/oz over the past 12 months. Galane has now also secured funding to bring the Galaxy mine into production by Q119, which could add a further 25koz per year at cash costs of around US$800/oz.
Tau underground has transformed Mupane
In 2013, Mupane was a high-cost mine, mining from multiple open pits at grades of 1.8–2.2g/t. However, a new mine plan implemented in late 2013 shifted the focus to the development of the higher grade (2.9g/t) Tau Underground, which has resulted in a steady decrease in cash costs. Rolling 12-month average cash costs have fallen from a peak of US$1,438/oz in Q313 to US$871/oz in Q218.
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