Dayton Mining posts first-quarter results

In its first three months of operation, the Andacollo open-pit, heap-leach mine in Chile produced 22,159 oz. gold at a cash cost of US$163 per oz. Owner Dayton Mining (TSE) recorded an income of $495,000 (2 cents per share) for the quarter ended March 31, compared with a loss of $997,000 (3 cents per share) a year earlier.

At the end of March, some 2.7 million tons of ore containing 62,700 recoverable ounces had been placed on the leach pad. Dayton expects production to increase each quarter into 1997 as the 120-day leach cycle approaches a steady state and increases in crusher throughput come into effect.

Gold production for 1996 is projected at 130,000 oz. at a cost of US$155 per oz.

As of Dec. 31, 1995, minable reserves stood at 40.3 million tons grading 0.031 oz. gold per ton at a stripping ratio of 2.1-to-1. The 1.3 million oz.

contained therein will sustain an initial mine life of eight years.