Record Q3 gold output for Glencairn

While able to celebrate record third-quarter revenue and gold production, Glencairn Gold (GGG-T, GGG-X) still managed to wind up in the red, blaming its net loss on its newly acquired Libertad mine in Nicaragua.

The company’s net loss for the quarter was US$3.2 million, or US1 per share, compared to US$1 million, or US1 per share, in 2005.

“The quarterly loss and increase in cash operating costs are painful,” said Glencairn president and CEO Peter Tagliamonte. “But investments are necessary to secure the future of the operation.”

Third quarter revenue was US$14.1 million, up from US$4.2 million in 2005, due to the sale of 22,787 oz. gold at an average price of US$618 per oz.

In total, Glencairn recovered 23,106 oz. gold in the third quarter at a cash operating cost of US$528 per oz., up from last year’s 9,814 oz. at US$409 in the third quarter.

Libertad produced 5,819 oz. gold at a cash operating cost of US$884 per oz.

Before Glencairn’s acquisition of Libertad early in the third quarter, the mine had suffered significant undercapitalization, resulting in insufficient stripping of the pit to maintain normal production levels.

“We are starting to see improvements from the measures we have implemented,” Tagliamonte said.

A recent report found Libertad contains indicated resources of 16.3 million tonnes grading 1.52 grams gold per tonne, with total contained gold at 794,000 oz.

Gold sales increased by US$1.1 million or 26% at the Limon gold mine in Nicaragua due to a 41% increase in gold prices from 2005, however, quantity of gold sold decreased 11% due to lower ore grades and recoveries.

Net earnings were US$800,000 for Limon with 8,568 oz. gold produced at a cost of US$447 per oz.

The Bellavista gold mine in Costa Rica, opened in December 2005, produced 8,102 oz. of gold costing US$363 per oz. with net earnings at US$900,000.

Recoveries were lower than projected at Bellavista because of a delay in finishing a grinding mill, which will be operational in the fourth quarter.

For the first nine months Glencairn produced 62,615 oz. gold compared to 30,867 oz. in 2005.

Glencairn is aiming to produce about 90,000 oz. gold in total for 2006.

Nine-month Revenue from gold sales was US$38 million with an average realized price of US$597 per oz., up from US$13.6 million averaging at US$432 per oz. during the same period last year.

Net earnings for 2006 so far are US$600,000 compared to a loss of US$2.6 million at the same time last year.

In early 2007 the company hopes to announce a strategy for the advanced gold project in Panama, Cerro Quema, of which it owns 60%.

Late in the quarter, Glencairn also acquired the Mestiza property in Nicaragua, which is within trucking distance to the Limon mine and has an inferred resource of 689,700 tonnes grading 10.3 grams gold per tonne.