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Kirkland: Swan Intercepts Likely Mean Growth In Gold Mineral Reserves

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Kirkland Lake Gold (TSX, NYSE: KL: ASX: KLA) reports that drilling exploration has resulted in high-grade gold intercepts in the Swan Zone at the Fosterville Mine in Australia. This likely will mean additional growth in mineral reserves, the company says. Key intercepts included 191 grams of gold per tonne over 2.6 meters, 134 g/t over 13.8 meters and 167 g/t over 3.85 meters. “The new drill results at Swan are encouraging and point to another solid increase in mineral reserves, at high-grades, when we release our Dec. 31, 2018 mineral reserve and resource estimates,” says Tony Makuch, president and chief executive officer. “We are also very encouraged by the identification of a new mineralized structure parallel to Swan, which offers the potential for additional growth in mineral resources with further drilling.” He adds that the company is moving toward Swan production, having extracted the first ore. “Ramping up production from Swan over the next two years is a key component of our plan to increase annual production at Fosterville to over 400,000 ounces by 2020,” Makuch says.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Alacer Posts 2Q Net Loss, Sees Sulfide Startup In 3Q

Tuesday July 31, 2018 09:18

Alacer Gold Corp. (TSX: ASR; ASX: AQG), which has an 80% interest in the Çöpler Gold Mine in Turkey, reports a net loss in the second quarter, but says a sulfide plant will be started up in the third quarter.  The company’s share of second-quarter production was 20,158 ounces, down from 25,113 in the same period a year ago. Alacer says the mine’s output declined due to the depletion of oxide ore and the transition to sulfide ore production. The company lists a net loss of $20.1 million for the second quarter, compared to a $22.8 million profit in the year-ago period, with the turnaround primarily due to special factors that include a foreign-exchange loss and lower income-tax benefits. However, Alacer says it has a net profit of $6.6 million, or 2 cents, for the first half of the year. Rod Antal, president and chief executive officer, says the company expects to start up its sulfide plant on time and about 10% under budget. “Wet commissioning of the crushing and grinding circuits is under way, with the crusher tested on oxide ore,” Antal says. “We expect the full oxide circuit to start processing ore during August. We will then start up the sulfide plant shortly thereafter, meeting our third-quarter schedule.” Earlier this month, Alacer announced an expected increase to 2018 oxide plant production to between 110,000 and 130,000 ounces at reduced all-in sustaining costs per oxide ounce of $650 to $700.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Guyana Goldfields Posts Profit; Output Below Projection

Tuesday July 31, 2018 09:18

Guyana Goldfields Inc. (TSX: GUY) reports a second-quarter profit although output was lower than projected, with the company earlier this month lowering full-year production guidance. Net earnings were $1.2 million, or a penny per share. The company says gold production of 28,250 ounces was below planned levels due to a slower-than-anticipated ramp-up in mining rates, which limited access to higher-grade ore. "Despite a disappointing quarter from both a production and cost perspective, we remain confident that the second quarter was a result of short-term operational setbacks and remain comfortable with longer-term forecasts,” says Scott A. Caldwell, president and chief executive officer. “With the equipment and contractor now on site and fully mobilized, our mining rate has already shown an improvement in July with a peak mining rate of approximately 63,000 tpd [tonnes per day]. For the month of July, gold production is estimated to be 14,000 ounces, which exceeds the monthly forecast.” Guyana Goldfields revised its 2018 production guidance to between 175,000 and 185,000 ounces of gold, compared to an original range of 190,000 to 210,000. All-in sustaining costs are now seen between $945 and $995 per ounce, up from $830 to $880 previously.

By Allen Sykora of Kitco News; asykora@kitco.com

 

McEwen Mining Posts Net Loss In Second Quarter

Tuesday July 31, 2018 09:18

McEwen Mining Inc. (NYSE, TSX: MUX) reports a second-quarter net loss, although output rose. Officials say net cash flow excluding project development costs was $6.3 million, or 2 cents per share. A total investment of $26.3 million was made to further our long-term production growth plans at the Gold Bar, Black Fox, El Gallo Fenix and Los Azules projects,” the company says. “As a result, our consolidated net loss for Q2 was $5.4 million, or $0.02 per share.” The net loss in the same period a year ago was $1.7 million, or a penny per share. Gold-equivalent production rose to 47,258 ounces from 32,584 in the same period a year ago. The company acquired the Black Fox mine in October. Full-year guidance is 171,000 gold-equivalent ounces.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Yamana Gold Observing 15th Anniversary As Public Company

Tuesday July 31, 2018 09:18

Yamana Gold Inc. (TSX: YRI; NYSE: AUY) is celebrating its 15th anniversary Tuesday. The company went public on this day in 2003 with an initial portfolio that included the Chapada project in Brazil, which was brought into production in 2007. The company has grown over the years and now has seven mines in Brazil, Argentina, Chile and Canada, turning out not only gold but also silver and copper. Yamana expects to produce over 1.1 million gold-equivalent ounces and 120 pounds of copper this year. “In 2003, we had a vision to create a significant and dominant intermediate gold company that focused on high-quality assets in more prominent and higher-quality mining jurisdictions in North and South America mostly to deliver better value with lower risk,” says Peter Marrone, chairman and chief executive officer, adding that “we have achieved these objectives plus much more.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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