Denver — Commissioning of the San Martin mine in Honduras propelled
The company earned US$387,000 (or 1 per share), compared with a loss of US$1.8 million (2 per share) in the first three months of 2000.
San Martin, which entered production early in the year, operated above design capacity, producing 22,391 oz. gold at US$122 per oz. Capital costs for the open-pit mine were US$44 million, which the company funded internally.
The mine has progressed to the crushing and agglomerating stage, operators are adding to the leach pads in order to handle increased throughput, which should generate 110,000 oz. for the year. Total cash costs are expected to fall to US$113 per oz.
Glamis is drill-testing several surface anomalies surrounding the mine.
San Martin pushed the company’s overall production to 49,089 oz. in the recent quarter, and total cash costs fell 25% from a year ago, to US$174 per oz.
Meanwhile, production at the Rand mine in California dropped to 13,901 oz., reflecting a shift toward working the Lamont pit. Stripping for the next phase of mining at the Yellow Aster pit is in progress. Total cash costs at the operation were US$228 per oz., up from US$173 per oz. a year ago.
At the 66.7%-owned Marigold mine in northern Nevada, Glamis’s share of production was 12,797 oz., down 5% from a year ago. Cash costs increased to US$208 per oz.
Glamis has resumed exploration at the Millennium deposit, south of Marigold’s main pit. After more than 90,000 ft. of drilling, the company has outlined a measured and indicated resource of 19.8 million tons averaging 0.03 oz. per ton, equivalent to 588,000 oz. gold.
Glamis intends to advance the project toward feasibility, and initial permitting should begin in the second or third quarter.
The company’s operations generated US$1.8 million in cash flow in the first quarter, up from US$100,000 a year ago. Revenue slipped 9% to US$14.4 million as Glamis’s realized gold price fell to US$262 per oz., down from US$290 a year ago.
At the end of the first quarter, working capital stood at US$19.5 million, and the company remains free of debt.
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