Canyon posts loss

After producing 23,180 oz. gold and 5,000 oz. silver from the Briggs mine in California, Canyon Resources (CAU-A) posted a net loss of US$1.8 million (or 14 per share) for the second quarter.

The company also owns the McDonald gold project in Montana, which was sidelined by an anti-mining initiative several years ago. The company filed suit against the state in hopes of either overturning the legislation or obtaining damages for the lost value of the project. The Briggs heap-leach operation has turned out 45,707 oz. gold and 9,400 oz. silver in the first half of 2001, compared with 44,309 oz. gold and 10,000 oz. silver a year earlier. Cash costs were US$237 per equivalent gold ounce during the 6-month period, down from US$267 per oz. a year earlier.

Canyon intends to seek damages of up to US$500 million for the taking of its Montana properties. The company lost the right to develop the properties after a citizens group lobbied for a ban against the use of cyanide.