Copper sales of $3 million from the Erdenet joint venture in northern Mongolia have boosted revenue for Armada Gold (AAU-T).
Armada, which owns 49% of the project, generated $3.6 million in revenue during first nine months of the year, compared with $244,295 for the corresponding period of 1996. However, the increase did not prevent the Vancouver-based company from suffering a loss of $3.6 million (or 4cents per share), compared with a loss of $2.1 million (5cents per share) in the same period of 1996.
The demonstration-scale plant processes waste rock from the Erdenet mine by solvent extraction-electrowinning. The mine has an estimated life of 90 years.
>From startup last February till Sept. 30, the Erdenet plant yielded more than 2,000 tonnes of copper cathode, almost half of which was produced in the third quarter.
During the quarter, Armada sold more than 900 tonnes to the Japanese firm Marubeni, netting the producer $73,000.
The plant is now operating 10% above design capacity, cranking out 11 tonnes per day. The company hopes to increase this to 60 tonnes beginning next year.
Armada raised $7.4 million in the third quarter by issuing convertible debentures. The remaining interest in the Erdenet mine is held by the Mongolian government.
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