A dramatic drop in production at the Seabee gold mine in Saskatchewan pushed
The 3-per-share loss comes on revenue of $15.7 million and compares with earnings of $100,000 (or nil per share) on $16.3 million in the first half of 2000.
Year-over-year, cash flow dipped 37% to $1.9 million.
Revenue from the Seabee mine fell 25% to $9.4 million, a decline partly offset by a 68% increase in oil and gas income, coupled with a 13% drop in total operating and administrative costs.
Seabee squeezed out 22,800 oz. from 133,019 tonnes of ore, versus 30,100 oz. from 116,470 tonnes in the first half of 2000. Consequently, the forecast for 2001 has been revised downwards to 50,100 oz.
The production decline reflects lower-than-expected grades in the D zone, where mining is ongoing. However, production is expected to improve once the higher-grading B and C zones are brought into the mining schedule. Both zones are being readied for stope development.
The lower grades, in turn, pushed total cash operating costs 10% higher to US$223 per oz., leaving little margin for realized gold prices of US$268 per oz. Nevertheless, total mine costs were down 13% to $7.8 million.
In the first half of 2000, unit costs rang in at US$203 per oz., whereas realized gold prices topped US$283 per oz.
In addition to Seabee, Claude owns the Madsen gold property in the Red Lake camp of northwestern Ontario. In late 2000, the junior dealt
As part of the deal, Placer purchased 1 million treasury shares of Claude at 75 apiece. This was the second such financing between the companies.
Placer Dome recenty launched a second phase of drilling. Holes are being collared to test for possible extensions up-dip or up-plunge of known mineralization in the high-grade No. 8 zone.
On June 30, Claude had $4.2 million in working capital and just over $1.2 million in debt.
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