Turquoise Hill Releases Q1 Production Results, Development Update

Turquoise Hill Resources (TSX:TRQ,NYSE:TRQ) has announced its Q1 2019 production for the Oyu Tolgoi asset, along with an update to underground development.

Highlights from the press release were as follows:

• Copper production of 45,800 tonnes, up 18.2 percent on Q1’18

• Gold production of 120,000 ounces, up 187.6 percent on Q1’18

• On track to achieve 2019 copper and gold production guidance

As stated in the press release:

As expected, mill throughput in Q1’19 decreased 3.2 percent over Q1’18 due to the concentrator processing harder Phase 4 ore and planned plant maintenance. This was offset by higher copper and gold mill head grades as mining advanced into the high-grade zone of Phase 4A, compared to Q1’18 when lower grade Phase 6 was processed. Recovery rates also benefited from the processing of higher-grade ore, with copper and gold recovery rates up 5.4 percent and 27.4 percent on Q1’18 respectively. Copper production increased 18.2 percent over Q1’18 due to increased head grade and recovery rate. Gold production increased 187.6 percent over Q1’18 primarily due to a 135.2 percent increase in head grade resulting from the increased contribution of Phase 4A.

Average gold mill head grades are expected to decline significantly over the remainder of 2019, particularly in the second half as softer, lower grade Phase 6 ore, and some material from mine stockpiles are processed. Average copper mill head grades are also expected to be lower over the remainder of the year.

Oyu Tolgoi is expected to produce 125,000 to 155,000 tonnes of copper and 180,000 to 220,000 ounces of gold in concentrates for 2019. Mill throughput for 2019 is expected to be approximately 40 million tonnes.

Click here to read the full press release from Turquoise Hill Resources.