Emerald Resources slides after wall slip at Okvau gold mine
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The news: Shares in Emerald Resources dived on the ASX after the gold miner reported a "minor wall slip" at its wholly owned Okvau gold mine in Cambodia.
The numbers: Emerald shares fell 4.4% to $3.90 by 2:20pm AEST, making it the second worst performing stock across the ASX 200.
The Perth-based miner said a small pit wall wedge failure occurred in the southwest of the Okvau open cut pit, with access to the pit expected to be impacted for the next 21 days.
In the interim, ore will be sourced from existing stockpiles, the company said, ensuring that its quarterly production guidance of 25,000 to 30,000 ounces of gold remains unaffected, with the grade maintained at approximately 2 grams per tonne.
Emerald said that the all-in sustaining cost for the quarter "may exceed" its guidance range of USD810 ($1,204) to USD880 per ounce, due to increased waste mining in the cutback. However, this will be offset at a future date by a commensurate reduction in earthmoving, it noted.
The context: Emerald, which operates gold projects in both Australia and Cambodia, said that the wall slip has meant advancing part of a planned cutback in its updated mine plan.
The company confirmed there were no injuries or equipment damage, and the affected area was quickly secured.
The source: ASX announcement
