Denver —
The company cranked out 184,449 oz. in the three months ended Sept. 30, up from 127,995 oz. in the corresponding period of 1999. The increase is attributed to the Lupin mine, in Nunavut, which was recommissioned in April following a 2-year hiatus.
The underground operation produced 40,696 oz. during the recent quarter, accounting for more than half of Echo Bay’s 44% increase in gold output.
Cash operating costs were US$199 per oz., which included a US$15-per-oz. benefit from hedging Canadian dollars for the Lupin expenditures.
The company earned US$9 million (or 4 per share), compared with a loss of US$19.9 million (17 per share) in the third quarter of 1999. Revenue between the two periods increased to US$76.4 million from US$54.2 million.
At the Round Mountain mine, half of which Echo Bay owns, 28% more ore was sent to the leach pads than in the year-ago period. As a result, output rose to 79,987 oz. from 74,422 oz.
Cash operating costs increased to US$201 from US$178 per oz., reflecting higher fuel costs, as well as the cost of placing more ore on the leach pads.
The company also recorded higher production at the McCoy-Cove mine, which mined higher-grade material. The Nevada operation cranked out 39,362 oz. gold, compared with 29,173 oz. a year ago, while silver production more than doubled to 2.7 million oz.
The comapny completed mining the open pits in October, though it will process material from lower-grade stockpiles through to mid-2002. Production should decrease accordingly next year. Underground mining continued from the upper zone of the Cove South Deep deposit, though higher water flows were encountered.
Meanwhile, the Kettle River mine in Washington state posted 24,404 oz. gold for the quarter, on par with year-ago figures. Cash operating costs were down to US$206 per oz., owing to higher grades and lower mining costs.
Farther afield, at the Youga-Bitou joint venture in Burkina Faso, Echo Bay and
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