Low gold prices and grades combined with higher fuel prices to land
The 6-per-share loss compares with a loss of $500,000, or 2 per share, in the first quarter of 2000. Revenue between the periods fell to $7.9 million from $9.1 million.
Likewise, River Gold had a cash flow deficiency of $300,000 in the recent period, compared with cash flow of $1.1 million a year ago.
The Eagle River mine cranked out 19,500 oz. gold at a cash cost of US$253 per oz. Production was adversely affected by unexpectedly low grades at the Edwards deposit, and costs were driven up by heavy snowfall and higher fuel prices.
The new production shaft has surpassed the 390-metre level and should reach the targeted depth of 505 metres by year-end. The shaft is expected to result in significant savings, compared with the current ramp system.
Eagle River had 122,000 tonnes of ore in stockpile and has begun treating higher-grade ore from the 6 zone. Accordingly, production forecasts for 2001 remain at 87,000 oz.
On March 31, River Gold had a working capital deficiency of $4.4 million. The company is preparing a rights offering to improve this situation.
The company has 31.2 million shares outstanding.
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