Ariel operations spin out cash

Two gold mining operations in Costa Rica helped Ariel Resources (TSE) post its highest 6-month earnings to date.

For the period ended Mar. 31, Ariel netted US$593,775, or about US6.4 cents per share. After changes in working capital, the company reported a cash flow of US$530,000.

Ariel operates the Tres Hermanos and San Martin underground mines, ore from which is processed at the company’s nearby Matapalo mill.

Throughput at the mill during the second quarter was 20,778 tons grading 0.145 oz. per ton, resulting in production of 2,657 oz. — a 30% gain over the same period last year.

About 85% of the second-quarter output came from Tres Hermanos, while San Martin produced about 3,000 tons of lower-grade material from pits on surface. San Martin entered production in the first quarter and underground development is continuing.

Ariel is also investigating the potential to develop five adjoining properties as a single, low-grade, open-pit mine.

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