Con chalks up record output of 123,000 oz.

A production record of 123,000 oz. gold was set in 1991 by a unit of Nerco (NYSE) at its Con gold mine on the outskirts of Yellowknife, N.W.T.

The Canadian operation was the largest contributor to Nerco’s mineral division which sold a total of 186,000 oz. gold and 3.4 million oz. silver last year, compared with 184,000 oz. gold and 7 million oz. silver produced in 1990.

Average cash costs of production were reported as US$267 per oz. gold and US$3.27 per oz. silver, compared with US$258 and US$4.21 per oz. gold and silver respectively in 1990.

Nerco’s mineral segment recorded US$400,000 in operating income, which included about US$1.5 million from asset sales, compared with US$10.9 million of operating income in 1990, which included a positive US$8.9 million reclamation liability adjustment.

The company said its 1991 operating income was negatively affected by lower average sales prices for both gold and silver, higher unit costs at the Con mine primarily due to lower ore grades, and adverse currency exchange rate changes.