Eastmaque reports good first year

Looking back on its first year of operations — a time some juniors meet their Waterloo — Eastmaque Gold Mines (TSE) can add up a respectable 19,858 oz gold produced from a heap leach project in California and a new tailings operation in Ontario.

The company says that translates into an operating profit of $5.8 million(C); operating profit being defined as gross revenues from sales, less direct cash operating costs.

First off the production starting block was the 100%-owned (subject to a 3.5% NSR) Cargo Muchacho project in Southern California which produced 12,775 oz since the start of production last May. During the last quarter of 1987, Eastmaque says it achieved a production level of in excess of 1,500 oz per month, with production coming from the Padre-Madre ore zone, one of three known zones on the property.

The company is anticipating that production from a second ore zone, the American Girl Canyon, will begin during the first half of 1989, resulting in an incremental contribution of 3,500 oz per month once in full production.

Permitting for Phase II in the American Girl Canyon underground mine, conventional mill and heap leach operations is expected to be completed in October, 1988, with construction due to begin immediately upon receipt of the necessary permits.

On the eastern front, Eastmaque commissioned its plant at the Kirkland Lake tailings project last December. Production for the period to May 31, during which the mill was not fully operational, totalled 5,142 oz, which the company says has “exceeded expectations.”

The thickener and ball mill came on-stream in May and official opening ceremonies took place in early June. During its first full month of production with the mill fully functional, the company achieved its production forecast with gold deliveries of 1,941 oz.