Sonora first quarter best output to date

The first quarter of 1988 resulted in the best production to date from Sonora Gold Corp.s (TSE) 78%- owned Jamestown mine. In total some 526,000 tons of gold ore were processed to yield a net quarterly production of 20,590 oz of gold.

Mining, milling and leaching operations each improved in the first quarter, resulting in an average direct cash operating cost of $13.45(US) per ton of or e milled. “The corresponding direct cash cost per oz of gold produced, $344 per oz, was higher than anticipated and will remain at about this level until the near-surface, lower grade ore in the Harvard deposit has been depleted,” M. G. Berretta, president, reported.

“When deeper, higher grade ore is exploited, this cost is expected to approach the low to mid $200s,” he added.

In addition, further costs attributable to bank interest, royalties, taxes, depletion, depreciation and amortization resulted in a net loss for the first quarter of $1,154,000 or 7 cents per share.