El Sauzal delivers for Glamis (April 25, 2005)

As if to offset its failure to take over Goldcorp (G-T), Glamis Gold (GLG-T) has announced record gold production in the first quarter.

Glamis cranked out 93,700 oz. gold from its three open-pit mines at a total cash cost of US$187 per oz., up from 50,900 oz. a year earlier at a cost of US$205 per oz.

The new El Sauzal mine, 155 miles southwest of the city of Chihuahua in Mexico, contributed 43,500 oz. gold at a total cash cost of only US$124 per oz.

The expanded Marigold mine in Nevada, two-thirds of which is owned by Glamis and one-third by Barrick Gold (ABX-T), contributed 28,200 oz. gold to Glamis’s account at a cost of US$227 per oz., up from 17,200 oz. at US$248 per oz. a year earlier.

In Honduras, Glamis’s San Martin mine saw quarterly production fall to 22,000 oz. gold at US$263 per oz. from 28,900 oz. at US$174 per oz. a year ago.

For the full year, Glamis expects to produce 400,000 oz. gold at a total cash cost of US$185 per oz.

Next year, when its Marlin mine in Guatemala is up and running, Glamis expects to be producing a total of 600,000 oz. gold annually.

The company will release its first-quarter financial results in early May.