Production increases at all mines and the startup of a new operation enabled Pegasus Gold (TSE) to report record production for the first nine months of 1992.
The company produced a total of 288,000 oz. gold and 1.62 million oz. silver over the period from the five mines, all in the western U.S. This compares with gold production totalling 226,600 oz. and silver output of 1.56 million oz. in the first nine months of 1991.
Earnings for the 9-month period ended Sept. 30 totalled US$9.58 million, up from US$6.29 million in the same period last year.
Major production gains were realized at the Montana Tunnels and Florida Canyon mines while the startup of the Black Pine mine earlier this year added 31,900 oz. of gold production.
The Montana Tunnels operation boosted its gold production to 57,400 oz. from 44,900 oz. last year as a result of process improvements and higher recoveries. Tonnage and average ore grades were also up at the mine lowering average cost per oz. (net of byproduct sales) to US$60 from US$140. Florida Canyon production jumped to 67,000 oz. from 55,200 oz. for the nine months. The company attributed the climb to an increase in spraying capacity initiated at the end of the third quarter, 1991.
Overall cash costs for the company averaged US$205 per oz. during the period, down from US$231 last year.
In a later release, Pegasus said it will be restating its third-quarter earnings to reflect a US$19.2-million writedown related to the termination of a joint venture agreement with Lac Minerals (TSE), covering the Ortiz gold property in New Mexico.
Earnings for the third quarter totalled US$3.8 million on revenues of US$51.6 million compared with earnings of US$3.1 million last year on revenues of US$46.6 million.
Be the first to comment on "EXPLORATION ’92 — Pegasus production at record level"