A 44% increase in gold production from the Castle Mountain mine has enabled Viceroy Resource (TSE) to post earnings of $11.25 million for the year ended March 31.
The figure is more than double the $5.5 million earned in the prior (startup) year.
Viceroy is operator and 75% owner of the California heap-leach operation, which turned out 150,907 oz. at US$207 per oz. during the second year of operation.
Fourth-quarter production totaled 46,507 oz., resulting in earnings of $3.3 million for the period. The improvements are partly due to a supplemental grinding mill completed last summer at a capital cost of US$6.8 million. It is expected the extra production will enable Viceroy to repay its debt. Given present production rates, the company projects it could retire its long-term debt by March, 1995 — some 14 months ahead of schedule. President Ross Fitzpatrick said Castle Mountain is now established as a “profitable, low-cost producer which generates nearly $2 million per month in cash flow.”
He said the next objectives are to increase reserves and establish a second mine. Toward those ends, the company intends to carry out a $3-million exploration program on the property and pursue opportunities elsewhere in North America.
Overseas, Viceroy has acquired a 30% interest in each of two affiliated, Vancouver-listed companies. Channel Resources is exploring in West Africa whereas Pacific Wildcat Resources is active in Southeast Asia.
Be the first to comment on "Viceroy posts record production"