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OceanaGold Posts 1Q Profit While Dealing With Haile Challenges

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OceanaGold Corp. (TSX, ASX: OGC) reports a smaller first-quarter profit than in the same period a year ago while it dealt with challenges at the Haile mine in South Carolina. The company lists net earnings of $12.4 million, or 2 cents per share.  This was up from a fourth-quarter profit of $10.9 million (2 cents) but down from $44.5 million (7 cents) in the first quarter of 2018. Excluding special items, the adjusted profit for the first quarter was $16 million, or 3 cents. For the first quarter, OceanaGold produced 125,681 ounces of gold, 3,910 tonnes of copper and 89,280 ounces of silver. The company says gold output was broadly in line with both the previous quarter and first quarter of 2018. Consolidated all-in sustaining costs were $1,026 per ounce, up from $814 in the fourth quarter. The increase reflects higher costs, at Haile in particular, as well as higher total sustaining capital, combined with lower average feed grades and gold sales volumes, OceanaGold says. Mick Wilkes, president and chief executive officer, says the company faced challenges at its Haile mine in South Carolina. “For much of the quarter, the mine remained saturated following the heavy rainfall experienced in the fourth quarter and start of the year. Access to higher grades were restricted and pre-stripping the saprolitic clay material proved challenging.” However, he says, plans to improve the situation became effective in March, resulting in a “considerable improvement to productivity and production.” In the first quarter, the Haile operation produced 25,717 ounces of gold. This included 12,819 ounces in March, which OceanaGold says was a 95% improvement on the previous two months. This was due to mine improvements, better weather, staffing and access to higher-grade ore zones, OceanaGold says.

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

 

Marathon Gold Announces CEO Retirement, Search For Successor

Monday April 29, 2019 09:02

Phillip Walford plans to retire as president and chief executive officer of Marathon Gold Corp. (TSX: MOZ) once a successor is hired, the company announces. The board has launched a search for a new chief executive to lead the company through the next phase of development and construction of the Valentine Gold Camp. Walford will assist the board with the transition and will continue to serve as a director. Board Chairman George Faught cites Walford’s “valuable contributions” to Marathon and says the company looks forward to “hiring a new CEO with the experience to lead the Valentine Gold Camp through continued growth and value creation as we embark on the next stages of development and construction.”

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

 

Premier Reports High-Grade Discovery At Antenna Target

Monday April 29, 2019 09:02

Premier Gold Mines Ltd. (TSX: PG) announces that high-grade gold mineralization was intersected in the first hole drilled at the Antenna target, located in Nevada between the historic Cove and McCoy gold/silver open-pit mines, where Barrick Gold Corp. is spending $22.5 million to earn a 60% interest in the area surrounding Premier’s wholly owned Cove Deposit. Premier reports discovery of a 118.9-meter zone grading 4.12 grams per tonne, including one 6.1-meter interval assaying 15.74 g/t gold. The company reports a second high-grade interval of 5.96 g/t gold across 33.5 meters, including 8.08 g/t gold across 12.2 meters. “Premier and Barrick geological teams have worked closely in identifying multiple high-quality targets that will be tested in the current drill program,” says Ewan Downie, president and chief executive officer. “The resulting Antenna discovery consists of mineralization contained entirely within the Favret Formation, a highly receptive and underexplored carbonate host rock at McCoy-Cove. On a grade thickness basis, this drill intercept represents one of the most significant ever drilled on the property and terminated in high-grade mineralization.”

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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