Gold production from interest in three open pits in Nevada increased to 82,281 oz. in 1992, up from 49,629 oz. in 1991, Rayrock Yellowknife Resources (TSE) reports. The higher output helped Rayrock post net earnings of about $2.5 million or 26 cents per share in 1992.
The greater share of production is due to the company’s increased ownership in the low-cost Marigold mine. In June, 1992, Rayrock increased its interest to 66.7% after purchasing Placer Dome’s (TSE) one-third interest for $17.5 million.
Last year, Marigold produced 90,771 oz. gold at a cash cost of $161.42 per oz. Reserves total about 10 million tons at a grade of 0.03 oz. gold per ton. Rayrock’s other gold production comes from its 26.5% interest in the Pinson mine and 44% interest in the Dee mine.
Operating costs at the three mines averaged US$198 per oz., down considerably from US$283 per oz. in 1991. Last year, the company realized an average price of US$345 per oz., down from US$384 in 1991.
In 1992, income from gold production accounted for about 35% of total revenue. Rayrock also derives income from agricultural mineral operations and oil and gas production.
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