While gold recoveries at Sonora Gold’s (TSE) 70% owned Jamestown mine in California are expected to improve this year, the company continues to be dogged by low gold prices.
Sonora recently reported a loss of $1.1 million or six cents a share for the three months ended March 31, compared to a loss of $800,000 or four cents a share in the same period last year.
A 42% owned affiliate of Northgate Exploration (TSE) subsidiary NorthWest Gold (AMEX), Sonora says its first-quarter revenues fell to $7.3 million from $8.8 million in the equivalent 1990 period.
Production at the Jamestown mine was marginally lower in the first quarter of 1991 in comparison to the first three months of 1990. The operation yielded 27,700 oz. of the yellow metal at a cost of US$262 per oz. in the 1991 quarter down from 27,800 oz. at US$276 per oz. last year.
Gold recoveries averaged 77.7% during the quarter compared to 80.6% in the first quarter of 1990. But as a greater proportion of ore is sourced from the deeper sections of the main Harvard deposit over the balance of this year, Sonora expects recoveries and ore grades to improve.
NorthWest Gold recently entered into a standstill agreement with Sonora under which the former will not enforce any rights with respect to $23.6 million owed to it by Sonora until January, 1993. Sonora Gold (TSE) 3 months ended Mar. 31 1991 1990 Revenue $7,312 $8,853 Net earnings (loss) (1,129) (822)
per share (0.06) (0.04)
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