Winzer, In case you missed it, the ECU report was on the wire this morning. In case the table is hard to figure out, just go to the report at the URL. The timetable for the mine has sure been pushed back and back. Perhaps some profit will be realized in quarter 4, especially with that extra cash from Hecla. - Jim
Tuesday September 12, 10:02 am Eastern Time
Press Release
biz.yahoo.com
ECU Silver Mining Inc.: Velardena Project
MONTREAL, QUEBEC--In the first six months of 2000, the Compan focused on completing a development program to insure a regular production from the Santa Juana mine for years to come. This program included the opening of the 17th level and establishing new development methods compatible with planned long-term production. It was highly successful:
weekly production increased from 1,000 tonnes to over 2,000 tonnes and oxide ore resources measured on the 17th level, as calculated by the Company's geologist, more than doubled to 103,000 tonnes grading 199 g/t silver and 4,6 g/t gold. The latter insures more than one year of production from existing resources of oxide ore at the Santa Juana mine. At current production levels, the direct costs are close to US$10 per tonne.
The evolution of the financial situation is obvious when we compare the second Quarter of 2000 to the three previous
Quarters. The following table shows the progress realized in 2000.
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COSTS AND PRODUCTION - FOUR QUARTERS
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3rd QT 1999 4th QT 1999 1st QT 2000 2nd QT 2000
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Tonnes milled 33,431 23,186 19,292 30,249
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Tonnes mined 19,312 18,198 19,292 30,249
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Ounces of Silver
produced 56,645 42,812 28,566 49,644
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Ounces of gold
produced 1,163 935 771 1,277
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Total sales US$516,881 US$517,517 US$340,768 US$556,307
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Project costs US$969,955 US$1,079,948 US$702,282 US$731,431
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Operating
cost/tonne US$28.17 US$46.58 US$36.40 US$24.18
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Operating
cost/ounce US$8.25 US$11.37 US$9.75 US$6.02
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Net Loss US$217,667 US$2,674,144 US$130,629 US$225,887
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Net Loss per
share US$0.005 US$0.051 US$0.002 US$0.004
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The 2nd Quarter of 2000 production increased 58 %, compared to the previous three Quarters, and will be maintained at
that level until we increase the number of working teams (drillers and scooptram operators), in September or October
2000. The production level could then increase by approximately 50 %, to reach 45,000 tonnes per Quarter.
Precious metals produced increased by 74 % for silver and 66 % for gold in the 2nd Quarter, when compared to the 1st,
resulting in a 63 % increase in sales. It would be misleading to compare these numbers with those of 1999 because a significant portion of the ore milled came from existing low-grade ore dumps.
The total project costs remained at sensibly the same level even if the production increased. Consequently, the unitary
costs were lowered by 34 % on a per tonne basis and 38 % on a per silver equivalent-ounce basis.
The 2nd Quarter of 2000 Net Loss increased compared to the 1st because of an increase in professional fees related to the preparation of the Annual Report and a loss on exchange rates.
The Company intends to reach profitability as soon as possible, a trend demonstrated by the results of the 2nd Quarter. The production growth will be maintained by adding mining teams and by increasing the percentage of ore coming from underground stopes. Furthermore, revenues of the 3rd Quarter will be affected by a recently signed custom milling
contract with Hecla Mining. This contract, for a renewable six months duration, will generate extra revenues of
US$345,000 per Quarter starting in the 4th Quarter. |
