Record gold reserves at Agnico-Eagle

Kingsgate Consolidated Ltd has reported a fall in gold production in its half-year results.

The Australian gold mining firm said that for the six months to December 2007, production fell by 17 per cent, compared to the same period the year before.

A lower grade of gold ore was blamed for the dip in production, egoli.com.au reports.

Unless new sources are found, the company stated that its ore feeds could run out by the end of this financial year.

"Low grades are likely to continue until new pits are opened within the new mining leases at Chatree North," said Kingsgate.

Kingsgate's current objectives include doubling the mill throughput at its mine to five million tonnes of ore a year.

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