With two mines now in operation, Black Swan Gold Mines (VSE) is working to push results back into the black. For the nine months ended Dec. 31, the company reported a loss of $199,000 on revenues of $3.9 million. This compares with a loss of $777,000 on revenues of $3.4 million in the year-earlier period.
Cash flow for the 9-month period was $432,000 while working capital slipped into a deficit of $625,000 as a result of expenditures on the company’s new Whistler open pit mine in Western Australia.
Black Swan spent $3.1 million on the mine over the period, including the $800,000 partial payment to the previous owners, CRA Exploration. Two further instalments of $515,000 each remain outstanding, one due in July, 1991, and the other in February, 1992.
The company began mining operations on Nov. 1, 1990, and expects the mine to produce 1,800 oz. gold per month over the present calender year. Gold production is forecast to total 32,400 oz. per year, including the company’s share of production from the 25% owned Gabanintha mine which is also in Western Australia.
Cash operating costs at the Gabanintha mine were US$275 per oz. over the 9-month period, while operating costs at the Whistler mine are projected at US$285 per oz.
Gold production for January totalled 1,866 oz. from the Whistler operation and 1,007 oz. from Black Swan’s interest in the Gabanintha mine. Black Swan Gold Mines (TSE) 9 months ended Dec. 31 1990 1989 Revenue $3,946 $3,422 Net earnings (loss) (199) (777) per share (0.007) (0.028)
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