Vancouver — Mid-tier miner
The Denver-based company suffered a loss of C$4.8 million (or C25 per share) in 2002, nearly half of which was incurred in the fourth quarter, when, despite revenue of C$15 million, the company lost C$1.9 million (C5 per share). Driving the loss was a C$964,000 expensing charge for the issuance of shares to members of senior management and C$600,000 of reclamation expenses. For the year ended Dec. 31, revenue amounted to $32 million, while direct operating costs hit C$23 million.
In the fourth quarter, the Florida Canyon mine in Nevada produced 29,552 oz. gold at a total cash cost of US$237 per oz., bringing its yearly total to 121,516 oz. at a total cash cost of US$243 per oz. Silver production hit 72,567 oz.
At the nearby Standard Mine project, permitting and development work continued throughout the year, accompanied by 30,000 metres of reverse-circulation drilling. Roughly US$1.3 million was spent on the project. Limited mining will begin in the third quarter of 2004 and gradually ramp up to full production of 60,000 oz. gold per year.
The Montana Tunnels operation, near Helena, added 6,687 development ounces and 13,400 gold-equivalent ounces in the fourth quarter, and for the year, it produced 33,344 oz. at a total cash cost of US$178 per oz. Full production is to resume in the second quarter of 2003.
Milling at Montana Tunnels resumed in October, on a limited basis (the company processed mineralized material encountered during the pre-stripping phase). Capital costs for the year totalled US$9.1 million, including maintenance, mill upgrading, and tailings impoundment. Prestripping saw 19.8 million tonnes of waste moved at a cost of US$26.8 million.
The total cash cost of producing an ounce of gold in 2002 was at US$232. For the fourth quarter, the company’s realized gold price was US$323 per oz.; for the year, it was US$309 per oz.
“We produced more than 121,000 ounces of gold at our Florida Canyon property in 2002 and completed in excess of 80% of the stripping at Montana Tunnels,” says Apollo Gold President David Russell. “Based on these results, we expect to produce an aggregate of 200,000 ounces of gold in 2003.”
Publicly listed since last summer, Apollo Gold is the result of a reverse-takeover by International Pursuit of a creditor-held company, also called Apollo Gold. The creditor-held company was running the last two Pegasus Gold mines still operating after Pegasus went bankrupt in 1999 (T.N.M., June 10/02).
At the end of 2002, Apollo had $13.3 million in cash and $23.5 million in working capital.
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