Vancouver — Lower gold grades from its Venezuela operations hurt the bottom line of
The junior posted a loss of $3.2 million (or 4 per share) in the quarter ended June 30, compared with a profit of $464,814 (1 per share) in the second quarter of 2001. Revenue amounted to $12 million, down from the $13.7 million a year earlier.
Gold production fell to 23,532 oz. from 27,358 oz, with 16,841 oz. coming from the San Gregorio mine in Uruguay and 6,691 oz. from operations in Venezuela. The shortfall is attributed to the leveling of the pit floor and the switch to primary material from saprolitic rock at the La Victoria open pit in Venezuela.
During the second quarter, the mill processed 98,871 tonnes of material, a 13% jump over a year earlier. However, the drop in grade and recovery rate had the effect of weakening the mill’s performance.
“We are putting the final touches on our pioneering activities at La Victoria, after which we anticipate increased tonnage and higher-grade material,” says Crystallex’s chief executive officer, Marc Oppenheimer.
On the development front, the decline at the Tomi underground mine in Venezuela is under way, and development ore grading 5-7 grams gold per tonne has already been extracted and processed at the Revemin mill. About 1,000 tonnes of material have been stockpiled, and the company expects to hit the main deposit in October. Gold grades within the main body are expected to yield around 14 grams gold per tonne.
Nearby, Crystallex is continuing to advance the Albino 1 underground operation, with early-stage mining slated to begin in the fourth quarter.
For the six months ended June 30, the company posted a loss of $4.4 million (5 per share) on revenue of $23.3 million, compared with a gain of $889,779 (1 per share) on revenue of $28.6 million in the year-earlier period.
Gold production amounted to 47,409 oz, compared with 53,240 oz. in 2001.
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