Production at the open pit mine, 70% owned and operated by Sonora, increased to 88,400 oz in the first nine months of 1989 from 73,000 oz in the same period last year.
As a result, Sonora cut its losses to $1 million or 5 cents a share for the nine months ended Sept 30, compared with $53.9 million or $3.20 per share in the identical period last year.
Sonora attributed the third-quarter loss of $1.6 million or 8 cents per share, compared with a loss of $1.2 million or 7 cents per share at the same time last year, to lower production and higher operating costs than in the early part of 1989.
“Higher production at Jamestown (over the 9-month period) is the result of better ore grades, improved recoveries and an increase in the tonnage of ore grade mined,” the company said.
Operating costs have been trimmed to $256(US) per oz for the nine months ended Sept 30, from $285 during the equivalent period in 1988. Before Sonora was forced to take a $50.6-million writedown in the carrying value of the mine, operating costs ran as high as $400 per oz. The company has also benefitted from improved gold recoveries — 80.3% this year compared with 76.8% a year ago.
Sonora says it is continuing to evaluate opportunities to reduce costs and strengthen its financial position.
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