Exall Resources reports rise in second-quarter revenue

The jointly owned Glimmer gold mine near Matheson, Ont., produced 6,258 oz.

of the yellow metal in the second quarter and is on track to reaching full production during the fourth.

Majority owner and operator Exall Resources (EXL-T) says annual output will reach 65,000 oz. by year-end and that cash operating costs are expected to average US$220 per oz.

Gold sales generated $3 million in revenue during the second quarter, which was used to defer bulk-sampling costs.

Exall also liquidated its gold-hedging program, generating $3.8 million in additional revenue. The funds were used to pay off $2.8 million of a $4-million bank loan and, in combination with stock issue, to retire a $1.5-million convertible debenture.

Exall holds a 65.5% interest in the mine, with the remainder held by Glimmer Resources (GME-V).

At last report, the Glimmer mine hosted minable reserves of 731,169 tonnes grading 12.9 grams gold per tonne. The deposit remains open at depth and along strike.