El Sauzal delivers for Glamis (April 13, 2005)

Dusting itself off after its failed hostile takeover of Goldcorp (G-T), Glamis Gold (GLG-T) has rebounded with a record quarter of gold production, powered by its new El Sauzal mine in Mexico.

For the first quarter, Glamis cranked out 93,700 oz. gold from three open-pit mines at a total cash cost of US$187 per oz., up from 50,900 oz. a year earlier at a cost of US$205 per oz.

The new El Sauzal mine, 155 miles southwest of the city of Chihuahua, contributed 43,500 oz. gold in the recent quarter at a total cash cost of only US$124 per oz.

The expanded Marigold mine in Nevada, owned two-thirds by Glamis and one-third by Barrick Gold (ABX-T), contributed 28,200 oz. gold to Glamis’s account at a cost of US$227 per oz., up from 17,200 oz. at US$248 per oz. a year earlier.

In Honduras, Glamis’s San Martin mine saw quarterly production fall to 22,000 oz. gold at US$263 per oz. from 28,900 oz. at US$174 per oz. a year ago.

For the full year, Glamis anticipates producing 400,000 oz. gold at a total cash cost of US$185 per oz.

Next year, with its new Marlin gold mine in Guatemala coming online, Glamis hopes it can reach annual production rates of 600,000 oz. gold.

The company will release its first-quarter financial results on May 2, 2005.