Lower realized prices and production translated into a first-quarter loss for
Losses in the period totalled US$1.1 million (or 2 per share) on revenue of US$2 million, compared with earnings of US$402,000 (1 per share) on US$5.4 million in the first quarter of 2001. A three-fold increase in exploration costs (mainly at the Marathon project) were partly to blame for the recent loss.
Cash provided by operating activites topped US$1.1 million, versus US$267,000 a year ago. The increase reflects the drawdown of gold inventory in-process at the San Francisco mine in Mexico, which is currently in a leach-only mode as a result of depleted reserves.
San Francisco churned out 7,540 oz. in the recent quarter, compared with 17,012 oz. a year ago, when mining was still under way. The gold was sold for an average US$268 per oz., down considerably from last year.
Leaching is expected to continue for the forseeable future.
In early March, Geomaque poured its first gold bar at the Vueltas del Rio mine in Honduras. By year-end, the open-pit operation is expected to have churned out 56,000 oz. gold, with 60,000 oz. to be poured in each of the following four years.
Cash costs for 2001 are expected to be US$200 per oz., and they should drop to US$169 per oz. annually thereafter.
At last report, Vueltas del Rio hosted 5.1 million tonnes averaging 2.5 grams gold per tonne, or 410,000 oz.
During the quarter, Geomaque sank 3,000 metres of drilling in the Marathon polymetallic deposit, in northern Ontario, as part of a preliminary economic study. The study came back positive, and Geomaque is soliciting senior companies as possible partners.
Additional infill drilling, metallurgical studies and exploration are planned for later in the year.
Geomaque can earn a 60% interest in the Marathon project by spending $2.7 million on exploration over four years and paying $1 million in cash to
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