Gold output rises at Piedmont mine

The company reported a net loss of $88,855 for the quarter, versus a loss of $432,959 the previous year. Robert Shields, chairman, said the results were better than expected in “view of the weather” which was cold and wet. Piedmont reported an operating profit of $116,000 for the period and he noted that general and administrative expenses declined sharply “due to more efficient use of our personnel and reduced use of outside services and consultants.”

He predicted that general and administrative expenses will remain low throughout 1989 while noting the company has no long-term debt but a strong working capital. Its working capital position of $1.3 million(US) at the end of March was enhanced by a $625,000 private placement with Toronto-based Corona Corp. (TSE).

The grade of material stacked on ore heaps has improved about 50% since February and it now averages about 0.045 oz versus 0.036 oz in 1988. “We expect better grades for the remainder of the year,” he added.

“Stripping and development work on the first new area of mineralization discovered by our geophysical survey at the Haile mine was completed in early May, and production from this area will commence shortly,” he said.

Detailed geophysical work is continuing in selected areas of the 2,300-acre Haile property in South Carolina. Deep drilling is planned from the bottom of the Red Hill and Haile pits to test the persistence and grade of gold mineralization at greater depths.

Piedmont has eight other gold exploration properties, seven in North Carolina and another just eight miles north of the Haile mine. Most of these have a production history.

Discussing the private placement with Corona, Shields said Corona “will add a lot of depth to our company. They will want to participate in our growth and will provide technical and exploration expertise to maximize our chances of finding a major gold deposit on our properties.”

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