Despite higher revenues and production, Rayrock Yellowknife Resources (TSE) posted a loss for the third quarter.
The company lost $863,000 on revenues of $20.5 million, compared with earnings of $1.5 million on $10.3 million for the same period in 1993. The loss resulted from slower leach recoveries at the Dee gold mine in Nevada. Exploration, metallurgical testing and engineering studies are being performed on the North Extension orebody at the Dee mine, where reserves are expected to increase. The existing, shallow reserves have been expanded as a result of new discoveries southwest of the open pit, and a new mine plan and reserve estimate will be available by year-end. Forecasts are that the mine will be able to produce 40,000 oz. per year for three years. The company plans to spend $10 million on deep drilling at the mine, beginning in the new year.
Rayrock’s total gold production for the current year is expected to be 95,000 oz., up from 85,150 oz. in 1993.
Meanwhile, affiliate Minera Rayrock (TSE) reports that startup of the Ivan copper project in Chile has been hampered by problems associated with the electrowinning circuit. Oxide ore is now being mined from an open pit, and excavation of deeper, sulphide ore will begin in December.
Copper production is increasing, and an annual rate of 10,000 tonnes should be achieved by year-end.
Elsewhere in Chile, Minera has discovered three zones of copper mineralization at the nearby Sierra Valenzuela property. The concession now hosts 13 areas of mineralization, with grades ranging between 1% and 2.5% copper, and the company is considering accelerating production from the property.
In Costa Rica, the company is carrying out infill drilling at the Bellavista gold property, as part of a prefeasibility study.
Be the first to comment on "Rayrock posts modest loss"