Despite the appointment, the Vancouver-based gold producer says it is in compliance with all terms of its senior bank indebtedness, as well as its convertible debentures, and does not foresee being in default with either facility.
Dayton owns the Andacollo gold mine, an open-pit, heap-leach operation near the coastal city of La Serena in central Chile. In 1998, the mine produced 92,548 oz. at a cash operating cost of US$241 per oz., compared with 91,347 oz. at US$251 per oz. in 1997. The 24.6 million tonnes of material mined last year contained 5.7 million tonnes of ore. About 5.5 million tonnes of ore grading 0.83 gram gold per tonne were crushed.
Dayton was faced with several operational problems at Andacollo earlier in the year. Lower-than-expected grades and tonnage in the Socorro and Churrumata deposits led to a comprehensive review of assaying techniques and grade control practices. Additional work was carried out to improve crusher throughput, pit design and mine planning activities.
Significant improvements in production were realized in the fourth quarter, with the mine achieving a record 30,558 oz. at a cash operating cost of US$209 per oz.
Dayton expects Andacollo to produce 145,000 oz. in 1999 at a cash cost of US$210 per oz. The company’s hedge position for 1999 is 84,000 oz. of puts at US$340 per oz.
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