Record output and lower cash costs kept
The junior miner earned US$89,000 on revenue of US$6.17 million, compared with US$107,000 on US$4.6 million in the first three months of 1998. Cash flow surged to US$1.15 million (or 3 cents per share) from $827,000 (2 cents per share).
Gold output from the San Francisco mine in northwestern Mexico rose 47% to a record 19,300 oz., whereas cash costs dropped 11% to US$240 per oz. The company sold its gold for US$320 per oz., or US$29 per oz. less than a year ago.
Geomaque sold 22,000 oz. in put options during the quarter for a net gain of more than $1 million (though the revenue generated will be recognized in the periods in which the options would have matured). Concurrently, it sold forward 24,000 oz. to the year ending March 31, 2000.
Development at the Vueltas del Rio project in Honduras continues, with the leach ponds and the first phase of the leach pad now constructed. The project is scheduled to start up in December, and, once in production, will add 60,000 oz. to Geomaque’s annual output, while lowering its combined cash costs to less than US$220 per oz.
Meanwhile, exploration continues on the Chicharra zone at San Francisco (see story, page B11) and the El Zapotal target at Vueltas del Rio. At El Zapotal, a 13-hole drill program is following up gold-bearing structures that have returned up to 15.66 grams gold and 5 grams silver over as much as 9.9 metres in trenching.
Field work will begin later in the year at the Cobb Creek gold project in northeastern Nevada. The company can earn a 100% interest in the project from
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