TORONTO (miningweekly.com) – TSX-listed Veris Gold on Wednesday reported the second consecutive quarter of steady-state production at its flagship Jerritt Canyon mine, in Nevada, doubling year-on-year payable gold production to 31 754 oz in the fourth quarter.
During the quarter ended December 31, gold sales of 32 198 oz accounted for revenue of $51.8-million from the Jerritt Canyon complex. This compared with gold sales in the same quarter of 2011 of $27.8-million from the sale of 16 850 oz.
The company, which in October last year changed its name from Yukon-Nevada Gold, on Wednesday said the fourth quarter ended December 31, marked the second consecutive quarter of steady-state production at its flagship Jerritt Canyon complex, which saw 35 042 oz of gold being recovered.
The increased production was driven by higher-grade ores coming from the fully ramped-up SSX-Steer mine, in addition to the Smith mine, as well as steady operations at the milling facility in the quarter, compared with a number of scheduled and unscheduled shutdowns occurring in 2011.
The company produced gold at a cost of $1 034/oz in the quarter.
Veris Gold posted a fourth-quarter loss before income tax of $21.4-million.
Development of the Starvation Canyon mine continued during the quarter with underground decline development. The company reported the project continued to be on schedule for production starting this month, ramping up to 600 t/d by the end of the second quarter.
The company also completed the remaining work on the second tailings facility and said it was now in a position to use this facility, once the original tailings facility had been completely filled in. Work on resurfacing the three rock disposal areas located in areas of historic openpit mining was substantially completed during the quarter.
This work was the final item remaining under the consent decree issued by the Nevada Division of Environmental Protection, allowing for testing of the runoff from these areas in the spring.
The company in June 2007 obtained a 100% interest in the Jerritt Canyon property through the acquisition of Queenstake Resources.
The company said it was focused on achieving sustainable production of about 175 000 oz to 185 000 oz this year, by continuing to develop and mine the two existing underground mines and complete the development of the Starvation Canyon mine.
Veris Gold’s TSX-listed shares traded at C$1.63 apiece on Wednesday.
Edited by: Creamer Media Reporter
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