First Silver Results
News Release #99-04
May 27, 1999 First Silver
Reserve Inc.
Suite 600 - 700 West Pender Street
Vancouver, B.C., Canada ,V6C 1G8
Telephone (604) 602-9973
FAX (604) 682-8728
Toll Free 1-888-377-6676
Website: firstsilver.com
E-mail: firstsilver@hotmail.com
First Silver Reserve Inc. Reports
First Quarter 1999 Results
Vancouver, B.C.: First Silver Reserve Inc. (“TSE:FSR”) announced today its March 31, 1999 first quarter financial results. All amounts are expressed in U.S. dollars.
During the first quarter of 1999, FSR produced 537,561 ounces of silver and 500 ounces of gold, a decrease of 132,811 ounces of silver over the same period last year. Total mill throughput for the first quarter was 65,294 tonnes, as compared to 68,500 tonnes in first quarter 1998. The mill head grade was 301 g/tonne silver and the mill recovery rate of 84.95%. Lower production was primarily the result of the mining of lower grade material which was interspersed in the mill feed from the La Blanca vein.
Revenue for the period was US $2.55 million compared with US $3.66 million for the same period in 1998, reflecting lower production and a lower average realized silver price. The Company's earnings were adversely affected by the loss of one weekly shipment of silver by a customs broker at the Guadalajara airport. The Company has commenced legal action against the customs broker to recover its loss. Net earnings for the three months ending March 31 were US $20,504 compared with net earnings of US $701,934 for the same period in 1998.
The most prospective minesite underground exploration target is currently believed to be at the intersection of three mineralized structures (La Zuloaga, Rosario-Condesa and La Mancha). This prospective area, termed "El Banco", is located approximately 500 m west of the current mine workings and is in an area of steep surface terrain which has limited surface drilling. To reach this prospective zone, the Company is developing a horizontal drift from the western most extent of the Ballenas level. This drift is progressing well and is projected to reach the target area early in the second half of 1999.
First Silver Reserve is a company focused on production and exploration of silver in Mexico. First Silver shares trade on the Toronto Stock Exchange under the symbol FSR.
On behalf of the Board of Directors
“Len Brownlie”
Director
News Release FIRST SILVER RESERVE INC.
1999 – 4 Release
Summarized First Quarter Results
(expressed in US dollars)
March 31
1999 March 31
1998
A S S E T S
Cash and short-term deposits $ 557,137 $ 754,979
Other current assets 2,436,267 2543,591
2,993,404 3,298,570
PROPERTY, PLANT AND EQUIPMENT 5,012,382 2,837,293
$ 8,005,786 $6,135,863
L I A B I L I T I E S
Current Liabilities 1,469,954 1,907,481
OTHER LIABILITIES 1,178,211 788,467
LONG - TERM DEBT 2,379,248 1,957827
5,027,413 4,653,775
S H A R E H O L D E R S ' E Q U I T Y
SHARE CAPITAL
36,671,921 common shares without par value
843,704 804,942
SURPLUS (DEFICIT) 2,143,669 677,146
2,978,373 1,482,088
$ 8,005,786 $ 6,135,863
March 31
1999 March 31
1998
REVENUE
Revenue 2,552,843 3,655,533
OPERATING EXPENSES
Operations 1,924,431 1,908,047
Administration 370,036 460,870
Depreciation 180,675 270,121
2,475,142 2,639,038
NET EARNINGS BEFORE INCOME TAXES 77,701 1,016,495
Provision for income taxes 57,197 314,561
NET EARNINGS FOR THE PERIOD 20,504 701,934
SURPLUS (DEFICIT) – BEGINNING OF PERIOD 2,114,165 (24,788)
Special distribution - -
SURPLUS (DEFICIT) –END OF PERIOD 2,134,669 677,146
(Loss) Earnings Per Common Share for the period $0.00 $0.02
C$0.00 C$0.03
|
