Expansion of the Jilau gold mine in northwestern Tajikistan enabled Nelson Gold (NLG-T) to ring up $214,000 in profits (or 3 cents per share) in the first quarter, compared with $387,000 (5 cents per share) in the corresponding period of 1997.
For the 3-month period ended March 31, the mine yielded 358,713 tonnes grading 2.03 grams gold per tonne and achieved a recovery rate of 89.46%.
Corresponding figures for the first quarter of the previous year are 204,841 tonnes of 3.3 grams gold and a recovery rate of 90.34%. Gold production between the two periods rose to 20,991 oz. from 19,753 oz.
The 75% increase in tonnage is attributable to an expansion program, completed in mid-February, that raises throughput to 1.7 million tonnes from 780,000 tonnes.
The decline in gold grade was predicted in the current mining plan, though the company reports that the actual head grade proved to be better than was forecast. The fall in the recovery rate is said to be a function of the lower grade of ore being processed.
Operating costs in the first quarter totalled US$197 per oz. gold, compared with US$201 a year earlier. Total cash costs, including government royalties, amounted to US$209 per oz. gold, compared with US$214 a year earlier.
Meanwhile, at the Taror project, 10 km from Jilau, work is on track for underground mining to begin in 1999. By 2000, combined production from the two deposits is projected at 280,000 oz. gold.
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