Exall slips into the red

Lower production and the depressed price of gold contributed to a second-quarter loss for Exall Resources (EXL-T).

For the three months ended June 30, the junior miner lost $678,159 (or 2 cents per share) on revenue of $5.3 million, compared with net earnings of $659,383 (2 cents per share) on $7.6 million in the corresponding period of 1998.

Losses for the first six months of this year totalled $345,398 (1 cents per share) on $11.37 million, compared with earnings of $333,657 (1 cents per share) on $14.03 million in the first half of 1998.

The Glimmer mine in northern Ontario cranked out 13,246 oz. in the recent quarter at an average cash cost of US$269 per oz., just US$5 shy of what the bullion was sold for. Exall operates and owns a majority interest in the mine, with Glimmer Resources (GME-V) holding the remainder.

In total, 72,124 tonnes grading 5.84 grams gold per tonne were custom-milled at the nearby Stock mill of St Andrew Goldfields (SAS-T). The head grade is slightly higher than that of material milled in the previous quarter and is expected to continue to improve.

Unaudited reserves stand at 1.2 million tonnes grading 8.9 grams gold, with another 979,932 tonnes grading 4.22 grams classified as a resource. Both figures are higher than independent calculations made earlier this year and reflect the inclusion of results from drilling completed subsequent to that audit. Exall has meanwhile acquired ground that may contain the downdip extension to mineralization.

On June 30, Exall had a negative working capital of $1.7 million.

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