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Tuesday, 16 October 2012
Sacre-Coeur Minerals cites continued improvement in production, cost perfomance at alluvial gold operations
Sacre-Coeur Minerals (CVE:SCM) says it produced and sold a total of almost 597 troy ounces for the September quarter from its alluvial operations in Guyana, for an average of 49.7 troy ounces per week, citing continued improvement in production and cost performance.
Alluvial gold can be found in soil and sediment deposits. These deposits are usually found around rivers, streams, or any other sort of running water.
"We are very pleased that our elluvial/alluvial production operation from a single production unit is continuing to improve, and is now producing gold at very competitive costs, and delivering consistent operating results," the company said in a statement.
"We look forward to further increasing output in the near future."
The South America-focused company said Tuesday the average price realized in the 12-week period ending September 30 was US $1,653.74 per ounce, yielding US $986,373 in gross sales receipts.
Operating availability rose to 66.8 per cent, despite time lost due to mechanical interruptions and moves and setups, Sacre-Coeur said.
Daily production per 20-hour actual operating day rose to 10.63 troy ounces, while cash costs for the 12-week period amounted to US$495.12 per troy ounce.
Royalties and production taxes amounted to an additional US$146.52 per troy ounce, providing a cash margin of US$1,012.10 per troy ounce produced and sold at the average price realized.
This equated to net cash flow of US$603,667 for the quarter.
Sacre-Coeur noted continued improvement at its operations in the latest period, as weekly production for September rose to 68.95 per troy ounce per week, excluding planned maintenance downtime, and operating costs fell to US$356.92 per troy ounce.
The decline in operating costs was due to better grades and increased operating availability, it said.
Meanwhile, the fineness of gold produced in the latest quarter remained steady, the miner said, at 96 per cent fine gold.
Sacre-Coeur is involved in the acquisition, exploration and production of properties for gold, metals and diamonds in South America.
Initially, the company is focused on exploring and producing gold from its properties in Guyana. It currently holds a 100 per cent interest in roughly 850 square kilometres in Guyana, including its Million Mountain property.
The project hosts an NI 43-101 compliant hard-rock resource of 451,000 troy ounces of gold combined in the measured and indicated categories.
Earlier this month, the Vancouver-based miner announced that it closed the first tranche of a brokered offering for gross proceeds of $658,440. The company said that under the terms of the offering, originally announced in early September, it issued about 5.48 million units at 12 cents each.