Despite cost improvements at its Jilau gold mine, in Tajikistan,
The company lost US$400,000 in the quarter ended Sept. 30, on revenue of US$2.6 million, and, for the first nine months of the year, incurred a US$1.5-million loss (or 1 per share) on revenue of US$8.1 million. In the third quarter of 1999, Nelson lost US$600,000 on revenue of US$2.1 million, whereas the 9-month loss was US$1.4 million.
The Jilau mine, in which Nelson owns a 44% interest, produced 19,570 oz. in the recent quarter, and more than 59,000 during the first nine months of the year, somewhat less than what it produced in the first nine months of 1999.
Mined grades were up slightly in comparison with the first nine months of 1999; Jilau has mined an average grade of 1.58 grams gold per tonne in 2000, against an average of 1.52 grams last year. Mill recoveries increased to 91% from 88%, while mill throughput fell to 1.3 million tonnes from 1.4 million tonnes.
The net effect has been a decrease in cash operating costs, to US$222 per tonne from US$235 per tonne. Mining expenses for the first nine months of 2000 fell to US$6.8 million, compared with US$7.1 million in the year-ago period.
The lower costs were offset by lower revenue, especially from interest income. Also, exploration costs rose, though, at US$143,000 for the first nine months of the year, they were hardly a major item.
The exploration budget was focused on the Chore and Taror gold deposits, both of which are at the feasibility stage. Taror, with a resource of 10.8 million tonnes grading 0.84% copper and 5.35 grams gold per tonne, should have a complete study by the end of 2001. At Chore, 145 km away, the operators are investigating the economics of re-starting a mothballed mill at the nearby Anzob antimony mine, which would feed the Taror mill once production had started there. Chore has a resource of 8.5 million tonnes grading 4.3 grams gold per tonne, and a prefeasibility study on the project is expected in mid-2000.
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