Drilling at its operations near Randsburg, Calif., has paid off for Glamis Gold (TSE). The company estimates reserves are up by more than 500,000 oz. gold from estimates at the beginning of July, 1992.
Proven and probable reserves at the Yellow Aster, Descarga, Baltic and Picacho operations totaled 58.9 million tons grading 0.024 oz. gold per ton, compared with an estimated 50.2 million tons at 0.023 oz. gold a year ago. Reserves in the “possible” category also increased, virtually doubling to 21.1 million tons grading 0.025 oz. gold compared with 11.8 million tons at 0.02 oz. gold in July, 1992.
With ore now being placed on the new Baltic heap-leach pads, Glamis expects to see production in the first quarter of fiscal 1994. At full production, Baltic is expected to boost yearly production by 40,000 oz. Total production would then be about 100,000 oz. per year.
Glamis’ success in more than replacing reserves will likely contribute to its already amazing market performance. At its recent trading level of $10.50, the issue is up about $7 per share from July, 1992. The company recently took advantage of the market’s insatiable appetite for gold producers by closing two equity financings for proceeds of $23.7 million.
Glamis has not reported results for the year ended June 30, although it netted $2.3 million (13 cents per share) for the nine months ended March 31. Cash flow for the same period totaled about $10 million after changes in working capital.
Be the first to comment on "Glamis glitters — At Randsburg, golden core . . ."