Gold sales reached 58,525 oz in the first half while income from producing properties was $5.03 million(US). Despite a significant drop in gold prices, Galactic reported net income of $451,000 for the 1989 first half, compared with a loss of $3.25 million for the comparable period in 1988.
Galactic has a 48% interest in the Ridgeway mine which is operated by partner Rio Tinto Zinc Corp. Gold production at Ridgeway was 81,477 oz, of which 78,184 oz were shipped at an average cash cost of $143(US) per oz.
Galactic said Ridgeway mining operations have now started in the higher grade north pit which, coupled with forward sales at $464 per oz, should strengthen its second half earnings.
The profit picture was not so bright at Galactic’s 100%-owned Summitville gold mine in Colorado.
Summitville produced 19,503 oz of gold and 30,539 oz silver during the first half at a net production cost of $410 per oz versus a selling price of $403 per oz of gold.
Galactic said the higher production costs at Summitville increased its average cash cost for the 58,525 oz of gold sold in the first half to $ 232 per oz.
The prolonged slump in gold prices also led to a management decision not to resume open pit mining at Summitville until the 1990 season.
Galactic stopped mining in June of this year when the integrity of a leach pad facility was in question, however this has since been resolved.
Heap leaching at Summitville will continue, however, and is expected to produce 3,200 oz of gold in July and about 2,000 oz per month for the balance of the year.
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