A production record of 64,200 oz. gold was set by Pegasus Gold (TSE) for the 1992 first quarter, a 56% increase over the 41,100 oz. produced during the comparable 1991 period.
The Spokane-based company said its gold production was up sharply from last year at most locations largely because of more favorable weather conditions throughout the first quarter.
Gold output at the company’s Zortman/Landusky mine was up over 11,000 oz. from the comparable 1991 period, with the increase attributed to the change to self-mining late last year. This Montana mine, the company’s largest, produced its one millionth oz. gold in March of this year.
Production gains were also reported at the Florida Canyon (Nevada) and Montana Tunnels (Montana) operations where ore grades and recovery rates were above projections.
Pegasus also lowered its cash production costs in the 1992 first quarter to US$221 from US$240 in the previous year. The largest decline was posted at Montana Tunnels where cash costs fell by more than US$100 per oz. because of lower unit costs and higher zinc production.
The improved operating performance enabled Pegasus to boost net income to US$794,000 from US$378,000 in the preceding year, even though the average price realized was US$391 per oz. gold compared with US$409 per oz. in 1991. Revenues increased to US$33.7 million during the first quarter from US$23.3 million last year.
“We are proud of our first quarter performance and look forward to another successful year,” said Pegasus President John Willson.
The company expects to produce 360,000 oz. gold this year.
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