Geomaque struggles during transition period

With gold production winding down at the San Francisco mine in Mexico and only just starting up at the Vueltas del Rio mine in Honduras, Geomaque Explorations temporarily slipped into the red during the second quarter.

The Toronto-based junior posted a second-quarter net loss of US$1.2 million (2 per share) on revenues of only US$1.5 million, compared with a net profit of US$561,000 (1 per share) on revenues of US$6.3 million during the same period last year.

The San Francisco mine has been in leach-only mode since November 2000. It produced 5,818 oz. gold in the second quarter, compared with 20,826 oz. in the second quarter of 2000, when mining was under way. Production will likely continue for 12 more months.

Vueltas del Rio produced 8,418 oz. gold from pre-production ore during the second quarter and attained commercial production levels on June 30.

Geomaque has recently made operational changes at the mine, including the addition of a larger agglomerator to increase crusher throughput. The company plans to further increase the size of leach-pads by late October.

Overall, Geomaque’s second-quarter gold production was sold at an average US$260 per oz., compared with US$304 during the year-ago period.

In northern Ontario, Geomaque is busy exploring its Marathon palladium property, where the company has successfully delineated two prospective zones named Southern Extension and Western.

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