Despite weak gold prices, Aurizon Mines (ARZ-T) reported both record production and improved operating results for the quarter ended June 30.
The Vancouver-based company boosted production to a record 13,088 oz. during the period, which represents a 79% increase from the 7,310 oz. produced a year earlier. Cash operating costs were slashed to US$208 per oz. from US$332 a year earlier, and from US$228 in the 1998 first quarter.
Aurizon operates and owns 50% of the Beaufor mine, and also has a 50% stake in the Sleeping Giant mine, which is operated by partner Cambior. Both underground operations are in Quebec’s Abitibi district.
Aurizon notes that gold production for the first half of this year was 18% ahead of target and, with higher rates forecast for the second half, the company is on track to turn out more than 50,000 oz. of the yellow metal in 1998 at a cash cost of less than US$225 per oz.
Aurizon posted net earnings of $483,00 on revenue of $5.7 million for the 1998 second quarter, compared with a loss of $1.4 million in the corresponding period last year. Net earnings for the 1998 first half totalled $569,000 on revenue of $11 million, compared with a loss of $1.8 million on revenue of $7.8 million a year earlier.
The company says its improved operating performance reflects higher-than-anticipated grades and throughput at both mines.
Beaufor turned out 9,516 oz. gold at a cash operating cost of US$211 in the latest quarter, 26% better than planned. Sleeping Giant achieved record production in the 1998 second quarter, owing to higher mining rates and a return to historical ore grades. The mine turned out 16,660 oz. gold at a cash operating cost of US$207 per oz., with Aurizon’s share being 8,300 oz.
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