Cumulative earnings for the seven months since commercial production began at the Lawyers mine in north-central British Columbia are reported as $1.33 million. An extraordinary reduction in income taxes resulting from unused tax benefits from prior years increased income to $2.66 million or 24 cents per common share. Cash flow for the period totalled $6.1 million.
Since the March 1989 start-up, Cheni milled 109,488 tons of ore grading 0.31 oz gold and 6.83 oz silver to produce 31,185 oz gold and 585,357 oz silver. Third-quarter production amounted to 14,901 oz gold and 323,536 oz silver.
Current recoveries for gold and silver are 95% and 79% respectively. Cash operating costs dropped from $217(US) to $207 per oz gold equivalent.
The company’s balance sheet continues to improve with working capital of $1.5 million and the gold- silver loan reduced from $7.24 million to $5.07 million.
Production is expected to total 45,000 oz gold and 900,000 oz silver for the year ending Dec 31.
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