Galactic Resources says 42,000 oz of gold was produced from the company’s Summitville project in Colorado by mid-November. Production started June 5 and Galactic says a profit of $522,073 was posted for the quarter ending Sept 30 on revenues of $8.2 million.
Robert Friedland, chairman, adds that the average gold price during the quarter was approximately $360(US) per oz and the cost of production $157 per oz. “The apparent low cost of production was achieved in part by capitalizing waste removal costs as this material is being used for dike and leach pad construction,” he notes. The production cost figure also benefited by assigning costs incurred to gold in inventory and process at the assumed recovery rate projected in the feasibility study.
Gold production will be much less than the 120,000 oz forecast for the year, possibly by as much as 60%, The Northern Miner estimates. Galactic says it has initiated a comprehensive reassessment of the mine plan for 1987 and beyond. The revised mining plan is scheduled for completion by early spring of 1987. Summitville leaching and gold recovery operations are expected to continue through December, he states.
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