River Gold stays afloat

By mining higher-grade ore, River Gold Mines (RIV-T) remained profitable in the first three months of 1999.

Earnings topped $287,000 (or 1 cents per share) on revenue of $9.2 million, compared with $733,000 (2 cents per share) on $7.5 million in the first quarter of 1997. Production rose 3,800 oz., to 21,000 oz.; realized prices fell $13, to US$286 per oz.; and cash costs climbed $9, to US$205 per oz., as mining progressed to deeper levels at both the Eagle River and Edwards mines near Wawa, Ont.

Cash flow dropped to $1.9 million from $2.1 million.

River Gold operates and owns the Eagle River mine and periodically mines the nearby Edwards deposit of Vencan Gold (VCG-M) in return for half that project’s profits. Mining and development at the latter project continue, with milling set to resume in the current quarter.

In all, the company milled 61,100 tonnes at a recovered grade of 10.7 grams gold per tonne, just slightly more than that milled in the first quarter of 1998. A total of 192,000 tonnes of broken ore remained stockpiled at the end of the recent quarter.

A mill expansion program that will see daily capacity rise to 900 tonnes is scheduled for completion in July. Shaft-sinking at the Eagle River mine will begin in the summer as well (T.N.M., May 10/99).