Photo by: Bloomberg
TORONTO (miningweekly.com) – Nevada-focused narrow-vein gold miner Klondex Mines on Wednesday reported a sharp sequential rise in gold output in the second quarter, as it accounted for the first full quarter of production from the Midas gold mine it acquired in February.
During the second quarter ended June 30, Vancouver-based Klondex produced 22 239 oz of gold equivalent, compared with 16 052 oz in the first quarter. It also sold 25 724 oz of gold equivalent during the latest period compared with just 4 288 oz for the first three months of the year.
During the first half of the year, the company mined a total of 77 029 t and processed 67 774 t, recovering a total of 38 291 oz of gold equivalent.
"As we continued to ramp up our Nevada operations, our team delivered excellent results. Based on our first half operating results, we are on track to meet management's expectations in 2014,” president and CEO Paul Huet said.
The company expects to release its full second-quarter financial results after market close on August 12.
Klondex is hoping to produce between 70 000 oz and 100 000 oz of gold equivalent this year.
The company last week announced details of a $14-million bought deal financing, which it would use for accelerated exploration and development at Midas and Fire Creek. This month it also announced three appointments to strengthen its Fire Creek management team as it prepares to take the project through to active production.
The Midas mine and milling facility is located about 200 km from Fire Creek. Klondex had previously said it planned to prepare its own mine plan for Midas and split the mill's capacity equally between the two mines.