The San Francisco gold mine in Mexico continues to provide a steady stream of production to
The quarterly output brings to 36,832 oz. the total amount of gold produced by the junior in the first half of 1999 — a record for the company. Production in the comparable periods of 1998 amounted to 12,681 oz. for the quarter and 25,842 oz. for the first six months.
Operating costs for the recent quarter were unavailable at presstime, but, for the remainder of the year, they are expected to drop to about US$200 per oz. on projected output of 36,000 oz. Such costs averaged US$240 per oz. in the first quarter, when 19,300 oz. were produced. (Total costs rang in at US$294 per oz.)
Meanwhile, modelling of the near-surface Chicharra zone, about 1.5 km west of the pit, continues. Mineralization in the area has averaged up to 3.7 grams gold per tonne over 31.5 metres and, if minable, could provide some rich pockets.
In other news, management hopes to raise $4.6 million by offering shareholders the right to buy 7.6 million units at 60 cents each. A unit consists of one share and half a warrant, with a whole warrant entitling the holder to buy an additional share at 90 cents within 18 months of the deal’s closing.
Canaccord Capital, acting as solicitor, has agreed to buy up to 2.5 million units.
Proceeds from the deal, which has yet to be approved by regulators, are earmarked for the Vueltas del Rio gold project in Honduras. That project, which hosts reserves of 5.1 million tonnes grading 2.5 grams per tonne, is expected to become Geomaque’s second producer, beginning in December.
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