Amigo Resources (LSE:AMGO) produced 10 kilograms of gold in August at its Mojimoto and Kabete sites in Tanzania, its first disclosed output since commissioning the primary gravity circuit.
The gold recovered so far has come entirely from physical gravity concentration, using water and mineral density differences to isolate free gold without chemical reagents.
Tailings from that process are being stockpiled on-site for secondary treatment through a chemical leaching circuit, which the company said would incorporate heavy-duty slurry tanks, high-capacity pumps and automated carbon-in-leach equipment.
Installation and commissioning of that leaching circuit, along with expanded grinding and crushing capacity now in transit to Tanzania, remain on track for early in the fourth quarter.
A startup bottleneck in the gravity circuit during August has been resolved, with routine optimisation continuing alongside efforts to manage local grid power stability and equipment reliability.
Amigo said it targets resuming structured monthly reporting on production, sales and revenue from October, once the gravity circuit has stabilised and the expanded plant comes online.
Craig Ransley, Executive Chair, said the 10kg output "represents critical operational validation of Amigo's processing model in Tanzania", with focus now turning to commissioning the expanded plant and integrating secondary recovery circuits.
Future throughput and recovery rates remain conditional on successful installation of that expanded plant and ongoing metallurgical performance.
News Intelligence what this means for the company
Amigo Resources produced its first 10kg of gold in August at its Tanzanian operations using gravity concentration alone, validating the processing model ahead of a planned leaching circuit expansion due in Q4. This follows the company's commissioning of its primary gravity circuit in late July; the 10kg output represents early-stage validation, but throughput and recovery remain conditional on successful installation of expanded plant capacity and secondary recovery circuits now in transit.
The company has moved from pilot commissioning to initial production, but remains pre-scale: 10kg in August against a prior target of ~20kg monthly per pilot plant suggests the gravity circuit is still optimising. Execution risk now centres on integrating the leaching circuit and expanded grinding capacity in Q4, with structured monthly reporting resuming only once both are operational—leaving near-term visibility limited.
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