Vantage has adapted its operational strategy in response to the changed economic and market conditions which the gold mining industry has had to contend with since 2011. .
Instead of pursuing a strategy of growth through discovering and developing new mining opportunities, in addition to increasing producing from its existing operations, the Company has adjusted its short- and medium term focus on generating strong cash flows and raising profitability from its two underground mines. This is being achieved by:
- Reducing costs to an operating minimum,
- Re-engineering mining layouts and methods to minimize ore dilution and optimize grade,
- Increasing development to provide greater underground mining flexibility.
Vantage’s original strategic objective of producing 100,000 ounces per annum by 2015 has also been amended, and subject to it having the necessary capital to expedite its revised plans, the Company has set itself the following key steps:
- Optimize the expansion and development from underground at the Lily Mine during 2014 with a view to increasing production to a capacity 35,000 ounces per annum by 2016.
- Transition from Stage 1 trial production at the Taylors Mine (which will be completed by 2014) to the Barbrook Stage 2 Expansion by initially producing 15,000 ounces per annum by 2016.
- Plan to eventually increase to between 50,000 and 60,000 ounces per annum from production from Barbrook, subject to the final results of the Bankable Feasibility Study for the Expansion.
- Increase the processing capacity of the Central Metallurgical Complex (“CMC”) to accommodate the treatment of both Lily and Barbrook Stage 2 ore at full production to collectively yield more than 90,000 ounces per annum.
- Continue exploration over the company’s prospecting rights with the objective of discovering sufficient mineral resources to justify establishing separate mining and processing nodes.
The planned production build-up is illustrated below: