New mill boosts FirstMiss earnings

The company announced earnings of $4.4 million(US) or 25 cents a share for the nine months ended March 31, compared to $1.6 million (11 cents a share) for the same period last year. Pre-tax operating profits were $3.9 million on net sales of $11.1 million, up from $2.5 million on sales of $7 million the previous year.

Total gold production at Getchell for the nine months was 33,774 oz, up from the 13,464 oz produced in fiscal 1988 from heap leach operations only. The company was also able to cut its average cash production cost to $112 per oz versus $174 for the same period last year.

But as the company itself points out, unit production costs for this period are considerably lower than anticipated for the life of the mine. Oxide ore was used initially and it cost less to produce and process than will the sulphide reserves.

The new 3,000-ton-per-day mill at Getchell began production with oxide ore in February and will soon begin processing the more abundant sulphide reserves which contain relatively high levels of arsenic.

The first of three autoclave trains using pressure oxidation to oxidize sulphide ores is already on stream. The company said start-up has been routine and is progressing on schedule. All three autoclaves are expected to be on stream by June.

The company spent $1.8 million on exploration during the last three quarters in an effort to find new reserves on the Getchell property.

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