- Avesoro Resources maintained its annual output guidance despite reporting gold production fell by more than a third in the first quarter.

Annual group guidance was maintained in a range of 210,000 to 230,000 ounces.

The company reported a 34% drop in first-quarter output to 45,098 ounces from a year earlier, which it blamed on lower plant throughput at its New Liberty and Youga mines.

New Liberty produced 25,855 ounces of gold in the quarter, a 5% increase on fourth quarter 2018; Youga gold production of 19,243 ounces in the quarter, fell 6% on Q4 2018.

First-quarter production did, however, mark a modest improvement on the fourth quarter's 44,962 ounces.

'We expect Youga to contribute between 90,000 - 100,000 ounces, with the difference being compensated for by New Liberty, where the Company is in advanced discussions with an open-pit mining contractor,' said Serhan Umurhan, Chief Executive Officer of Avesoro.

'If concluded successfully, the engagement of the contractor is expected to reduce our mining costs below the already very attractive internal cost per tonne that we achieve, provide access to additional mining equipment to increase material movement and outperform the original production guidance at the mine.'

'I now look forward to updating the market on the updated NI 43-101 Mineral Resource and Mineral Reserve update for Youga, which we intend to complete during the second quarter of 2019.'

At 8:30am: [LON:ASO] Avesoro Resources Inc. share price was -8p at 117p

Story provided by