TORONTO (miningweekly.com) – Shares in Vancouver-based Timmins Gold rose 5% on Tuesday, after the firm reported financial and operating results from the first quarter of commercial production at its San Francisco mine, in Mexico.

Timmins poured the first gold at San Franscisco in December last year, and declared commercial operations from April 1.

The mine operated at an average of 1,7-million tons a month during the second quarter, and an average of 10 059 t/d of ore were placed on the leach pads, Timmins reported.

The company produced and sold 11 299 oz of gold and 6 696 oz of silver during the three months, for gross proceeds of C$14,3-million.

The San Francisco mine generated a net profit before tax of around C$1,9-million and cash flow from operations of C$1,4-million.

Costs in the quarter were still high, at C$920/oz, net of by-products, but should be down to C$520/oz by year-end, and are forecast at C$420/oz for the life-of-mine, Timmins said.

Production levels are expected to improve and costs will decline after the mining contractor agreed  to supplement the existing fleet with two additional drills (one of which is now onsite), three additional haul trucks, and one more shovel, the firm added.

Shares in Timmins Gold rose 5,3% on Tuesday, to C$1,98 apiece by 15:59 in Toronto.

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