Production rose to 4,370 oz during the quarter, up from 2,800 oz in the 1988 second quarter. An average of 36,328 tons of mineralized rock was processed and stacked per month in the 1989 second quarter, compared with an average of 39,142 tons per month in the second quarter of 1988.
Chairman Robert Shields said a significant improvement in the grade of mineralized rock mined and stacked more than offset the wet weather and lower gold prices.
Piedmont opened its Haile gold mine near Kershaw in early 1985. The company is considered to have pioneered the resumption of gold mining in the southeast by using for the first time the heap leach process in the humid southeastern climate.
The company reported second quarter net income of $101,197 (US) compared with a net loss of $21,095 in the second quarter of 1988. Net sales increased to $1.5 million compared with $1.2 million in the same period last year.
Exploration activity is also continuing at the Haile property, including more detailed geophysical surveys in key areas. The company has already started development drilling and pit design at a second new zone of mineralization discovered by soil sampling and geophysics. The company noted that rock in this area is well oxidized and not covered by coastal plain sand.
Recent drill results (all average grades) include: 60 ft of 0.28 oz gold; 55 ft of 0.14 oz; 120 ft of 0.21 oz; 70 ft of 0.30 oz; 120 ft of 0.11 oz and 65 ft of 0.15 oz per ton.
The company also started drilling at the Red Hill and Haile pits and at the Snake zone to test the persistence and grade of mineralization at depth.
Corona Corp. (TSE) currently holds a 12.6% equity stake in Piedmont Mining.
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