Geomaque Announces Second Quarter 1997 Financial Results Mining,
crushing records set as a result of expansion
TORONTO, ONTARIO--Geomaque Explorations Ltd. today announced
financial results for the quarter ended June 30, 1997, during
which the Company:
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- Recorded earnings per share of $0.01;
- Completed expansion of leach pad area at San Francisco Mine;
- Crushed and stacked a record 720,000 tonnes of ore;
- Continued to receive positive results from drilling at Vueltas
del Rio gold deposit in Honduras;
- Expanded Vueltas del Rio drill program to 16,000 metres.
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The Company's record of profitability continued during the second
quarter, with earnings of $220,000, or $0.01 per share, compared
with earnings of $791,000, or $0.02 per share in the prior year
period. Cash flow from operations was $888,000, or $0.02 per share
compared with $1.7 million, or $0.05 per share in the second
quarter of 1996.
Gold production at the San Francisco Mine totaled 9,470 ounces
during the quarter, and the Company recorded revenue of $3.4
million on gold sales of 8,995 ounces at an average realized price
of $375 per ounce. Revenue in the second quarter of fiscal 1996
was $4.3 million for an average gold price of $402.
Mining and crushing rates increased substantially during the
quarter as a result of the expansion program which concluded in
March with the installation of a new crusher circuit. Crushed ore
to the pads totaled 720,000 tonnes, compared with 362,000 tonnes
crushed and stacked during the first quarter and 351,000 tonnes in
the second quarter of 1996. Phase three and four leach pad
construction was completed in June, more than doubling the pad
area at the San Francisco Mine and enabling the phase one and two
pads to be placed entirely under leach. As a result, record
production of 7,010 ounces was achieved in July.
Mine operating costs for the quarter were $2.2 million compared
with $2.4 million in the corresponding period of the previous
year. Cash operating cost per ounce was $233, compared with $217
in the second quarter of 1996. Total mine cost per ounce was $297,
versus $263 in the second quarter of 1996.
Capital expenditures at the mine during the period totaled $2.7
million, primarily reflecting the leach pad expansion and the
purchase of a stacker/conveyor system for loading ore on the leach
pads, which was installed subsequent to the end of the quarter.
"While the second quarter results reflect the lag in putting ore
under leach due to construction of the new pad, we are extremely
pleased with how efficiently the San Francisco Mine is operating,"
said John Paterson, President and Chief Executive Officer. "We
more than doubled the amount of ore loaded on the pads and crusher
throughput continues to increase. With the expansion of our
leaching area and the addition of the stacker conveyor, gold
production will rise throughout the third quarter and the balance
of the year."
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San Francisco Mine operating statistics, Q2 ended June 30, 1997
Crushed ore to pad 720,000 tonnes
Grade 1.14 g/t
Recoverable ounces to pad 18,400 ozs.
Cash cost per ounce $233
Cash cost per tonne of ore $5.36
Stripping ratio 2.98:1
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For the six months ended June 30, earnings totaled $649,000, or
$0.02 per share, compared with $830,000, or $0.03 per share during
the first six months of fiscal 1996. Cash flow for the six months
was $2.03 million or $0.05 per share, compared with $1.96 million,
or $0.06 per share, in the first half of 1996.
EXPLORATION
Continued positive results at the Vueltas del Rio gold deposit in
Honduras led the Company to increase the drill program from 6,000
metres to 16,000 metres during the quarter. Infill drilling in the
San Juan Zone has been completed, and one drill is now operating
in the Main Zone. Trenching and mapping throughout the Vueltas del
Rio deposit continued during the quarter and exploration of other
prospective areas on the 10,000 hectare property will begin in the
fourth quarter. Metallurgical testing of sulphide and oxide
samples from the San Juan Zone to follow up on work done by
previous operators is scheduled to begin in the third quarter.
Geomaque Explorations Ltd. is an international gold mining and
exploration company which is producing gold from its 100
percent-owned San Francisco Mine in the State of Sonora, Mexico,
and exploring for gold in Latin America.
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Geomaque Explorations Ltd.
Condensed Consolidated Balance Sheets
(in thousands of U.S. dollars)
June 30 December 31
1997 1996
(unaudited) (audited)
Current assets $ 6,378 $ 5,019
Funds in escrow 12,222 -
Other assets 29,413 17,053
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$ 48,013 $ 22,072
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Current Liabilities $ 8,243 $ 1,831
Deferred taxes and
site reclamation 1,307 901
Shareholders' equity 38,463 19,340
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$ 48,013 $ 22,072
------------ -----------
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Condensed Consolidated Statements of Earnings
(in thousands of U.S. dollars)
(unaudited)
Three months ended Six months ended
June 30 June 30
1997 1996 1997 1996
------ ----- ----- -----
Revenue
Precious metals $ 3,373 $ 4,329 $ 8,526 5,196
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Expenses
Operating 2,165 2,381 5,847 2,883
Amortization of
mining properties 506 442 947 556
Corporate 255 218 465 389
Other 46 38 134 51
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2,972 3,079 7,393 3,879
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401 1,250 1,133 1,317
Other (expenses) income (72) 1 (134) -
-------------------- -------------------
329 1,251 999 1,317
Income taxes 109 460 350 487
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Earnings (loss)
for the period $ 220 $ 791 $ 649 $ 830
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-------------------- -------------------
Earnings per share $ 0.01 $ 0.02 $ 0.02 $ 0.03
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Got following from Carlson on line today
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-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Geomaque Explorations Limited
Sean Stokes
Manager, Investor Relations
(416) 956-7470 |
