A modest-sized gold mine in Mexico’s Sonora state is churning out profits for Geomaque Explorations (GEO-T) and, at the same time, providing a base for expansion into new ventures.
The San Francisco heap-leach mine produced 25,596 oz. in the first nine months of this year at an average cash cost of US$235 per oz.
The 3-month period ended Sept. 30 marked the company’s third consecutive profitable quarter. Revenue for the period was $3.7 million, while earnings were $426,000 (or 1 cents per share), compared with a loss of $247,000 in the third quarter of 1995.
Earnings for the 9-month period ended Sept. 30 were $1.25 million, compared with a loss of $771,000 in the same period a year earlier.
Geomaque President John Paterson notes that production has increased steadily since of the end of the third quarter. “We have poured, on average, more than 940 oz. per week over the past four weeks and we expect this trend of increasing production to continue through the fourth quarter.” An expansion program at the San Francisco mine is aimed at boosting annual production to 80,000 oz. A new crusher will be added early next year.
Geomaque continues to drill its Chicharra property, 2.5 km west of the San Francisco mine. To date, 40 holes have been completed and more work is planned.
The company will soon begin exploring its Diapaga concession in Burkina Faso, a joint venture with Orezone Resources (ORZ-M).
In other company news, Geomaque intends to merge with Milagro Minerals (MLG-V), a junior exploring gold properties in Honduras. Shareholders of Milagro will vote on the proposed merger on Nov. 29.
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