Rolly Uloth, President, commented "It's refreshing to see a gold mining company exceed forecasts in the current tough operating environment. We can attribute our strong production results to the efforts of the operating team. We expect stable costs and good grades to continue."
Gold Production
During the second quarter, 2008, combined gold production from the Company's Eagle River and Kiena mines totaled 22,700 ounces, a 12% increase over first quarter production. Production for the first half, 2008, stands at 43,000 ounces. We are on pace to exceed our 2008 production target of 80,000 ounces.
The Eagle River mine produced 13,600 ounces from 25,500 tonnes milled at a head grade of 17.1 gAu/tonne. Metallurgical recoveries averaged 97.2%. Recovered grades increased 25% compared to the first quarter, 2008.
The Kiena mine produced 9,100 ounces of gold from 65,800 tonnes milled at a head grade of 4.4 gAu/tonne. Metallurgical recoveries averaged 98.5%. Recovered grades increased 10% compared to the first quarter, 2008.
Increased production and grades with stable costs are expected to increase gross margins in the second quarter.
Gold Sales
Gold sales in the second quarter totaled 22,600 ounces at an average realized price of $913Cdn per ounce. This compares to 17,300 ounces sold at an average price of $931Cdn per ounce during the first quarter, 2008. For the first half of 2008, gold sales have averaged $921Cdn per ounce, or $161Cdn per ounce more than they did during the first half of 2007.
Bullion inventory at the end of the second quarter stood at 9,900 ounces.
Second Quarter Financial Results
We expect to release our second quarter, 2008, financial results the week of August 11, 2008.
Technical Information
Gold production figures are preliminary in nature subject to final refining balances and metallurgical balances. The technical information in this release has been reviewed by George Mannard, P.Geo., Vice President of Exploration and "Qualified Person" within the meaning of National Instrument 43-101. -- www.cnxmarketlink.com
