With the Santa Rosa project in commercial production since late April, Andean American Mining (AAG-V) has narrowed its losses in the three months ended June 30.
During the second quarter, Andean put in a net loss of $120,458, compared with a year-ago loss of $258,599. Revenue from gold sales was $760,468.
The quarter’s gold production amounted to 3,636 oz. at an average total cash cost of US$201.50 apiece. Production improved steadily over the three-month period, with nearly 38% of the quarter’s production coming in June. The improvement continued into July, where 2,255 oz. were produced at US$151.89 per oz. Andean expects production in August and September to continue to increase despite flat or lower grades.
The company has begun testing components for the expansion of the adsorption, desorption and recovery (ADR) plant. The new crushing plant will be tested in September and start-up will occur gradually by year-end – later than planned due to revisions in the feed hoppers and chutes.
Andean is expanding its crushing capacity to handle up to 3,250 tonnes per day. Once the new crusher is installed, daily production will be ramped up 2,000 tonnes.
At that capacity, the junior expects to produce 12,000 oz. gold per quarter at an average cost of US$110 per oz., net of silver credits. Plans also call for the installation of a silver precipitate circuit and expansion of the leach pad. When all is said an done, the capital cost of the total mining operation is expected to approach US$2 million.
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