The 70% owned Jolu gold mine in Saskatchewan’s La Ronge district was the primary reason for the success. Since Jan 1 when commercial production began, 129,000 tons of ore grading 0.45 oz gold per ton have been processed.
Gold production for the first nine months totalled 56,136 oz at an average cost of $150(US) per oz. This compares favorably with costs of $170 and $157 for the first and second quarters respectively. Higher throughput, enhanced recoveries, and lower reagent consumption were cited as reasons for the drop in production costs.
Management projects that the 5,400 oz remaining on the original 35,000-oz gold loan will be delivered by mid-December.
Corona Corp. (TSE), operator and owner of the balance of the mine, is planning a drilling program designed to outline reserves below the 450-m level. Reserves at Jolu at the end of October were 310,000 tons grading 0.45 oz gold.
The Silver City heap leach operation in Utah sold 5,051 oz gold and 94,351 oz silver during the 9-month period. On a gold equivalent basis, the mine produced 6,503 oz at an average cost of $148(US). International Mahogany has a 30% indirect interest in the operation.
The company indicated that plans to expand the leach pad area and to process an additional 425,000 tons of material will be completed by the end of November. The 425,000-ton reserve is estimated to grade 0.047 oz gol d and 1.3 oz silver with recoveries projected at 60% for gold and 15% for silver. Capital cost of the expansion is projected at $1.1 million.
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