NEWS ROUNDUP — Lower costs at Sterling mine

There is bad news and good news from the Sterling mine in Nevada:

It produced 6,865 oz. gold during the first six months of the year, short of the 7,508 oz. reported for the same period in 1992. But cash costs fell to US$225 per oz., well below the US$274 reported last year.

The mine is operated and 52%-owned by Cathedral Gold (TSE) which placed 42,719 tons on the heap leach pads during the period. Average grade: 0.257 oz. gold per ton.

This represents a 60% increase over the production budget, which called for 27,000 tons grading 0.25 oz. gold.

Moreover, the increased tonnage is expected to boost gold recovery in the second half of 1993.

Cathedral reported net income of $69,000 for the second quarter, compared with a net loss of $28,000 for the same period in 1992.