Partners High River Gold Mines (HRG-T) and TVX Gold (TVX-T) report a drop in cash costs at their equally owned New Britannia gold mine in northern Manitoba.
The underground operation turned out 24,660 oz. gold in the quarter ended June 30 and 48,029 oz. in the first half of 1998, representing a 7.8% increase over expectations.
Cash costs were US$239 for the quarter and US$241 for the 6-month period, compared with US$276 and US$296 per oz. in the corresponding periods last year. Current cash costs are believed to be sustainable for the rest of the year, with further reductions expected in the years ahead.
The partners note that New Britannia continues to benefit from a hedging program, with 81,000 oz. sold for 1998 at an average price of US$465 per oz., and 12,850 oz. sold through March 1999 at an average price of US$481 per oz.
Drilling is continuing in an attempt to replace reserves mined during the year and to add new reserves and resources.
New Britannia is expected to produce 92,500 oz. gold this year.
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