Production at the Gazar placer operation of Java Gold (JVAG-C) in Mongolia got off to a rocky start in 1997, with just 457 oz. gold being produced from the start of operations in June to the end of the season in October.
The Toronto-based company incurred a loss for 1997 of $9.3 million (or 43 cents per share), including an operating loss at Gazar of $593,000 and property writedowns in the region totalling about $6.5 million.
The company blames poor production at the operation, situated in the Zaamar Valley of Northern Mongolia, on the unsuitability of the plant for large volumes of placer material, as well as long shutdown periods related to the unavailability of replacement parts. Production is estimated by the company at 17,200 cubic metres grading 0.83 gram gold per cubic metre.
The company is currently seeking financing to restart placer operations in 1999 with a plant better-suited to conditions in the region.
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