The company reported a net loss of $80,000 or 1 cents per share, compared to net income of $47,000 or 1 cents per share in the 1988 quarter. Operating income was $50,000 on revenues of $256,000, compared to operating income of $211,000 on revenues of $512,000 in the comparable 1988 quarter.
According to Pierre Lebel, president, high winds and freezing temperatures at the Stirling mine this past winter reduced gold production to 1,080 oz, compared to 2,871 oz during the first quarter of 1988.
Cathedral also owns a 100% interest in the advanced Porcher Island gold property near Prince Rupert, B.C. The company said recent metallurgical testwork showed that gold recoveries of more than 95% (within a bulk pyrite concentrate) could be achieved using a relatively coarse grind of 40-50% minus 200 mesh.
The concentrate grade produced from flotation locked cycle testing was reported as 7.87 oz gold per ton, with no smelter penalty elements present in the concentrate.
Cathedral also reported that tailings from the flotation process were non-acid generating and biological toxicity test showed the decant solution used was not harmful to fish. These factors will contribute to environmentally positive mining conditions, the company noted.
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