Eastmaque’s American Girl boosts first-quarter output

Although gold production levels jumped significantly for Eastmaque Gold Mines (TSE) in the 1991 first quarter compared with the year-earlier period, the company continues to report losses.

Eastmaque recorded a loss of US$138,000 for the first three months of this year, down slightly from the US$192,000 loss reported in the 1990 first quarter.

Gold production totalled 15,023 oz., up from 8,995 oz. last year. The increase is primarily the result of the startup of the underground operations at the company’s 50% owned American Girl mine in southeastern California.

Cash production cost at the American Girl totalled US$258 per oz., compared with US$308 per oz. in 1990.

The company’s wholly owned Kirkland Lake gold tailings recovery operation produced 5,258 oz. at an average cash cost of US$289 per oz., compared with 4,535 oz. last year at a cost of US$366 per oz.

The increase in ounces produced, combined with the drop in operating costs, is reflected in a jump in cash flow.

Cash flow for the recent 3-month period was US$1.4 million before changes in non-cash working capital items, compared with cash flow of US$474,000 in the first quarter of 1990.