The Gold Report
Notable Quotes
"ICG has closed a CA$2.5M flow-through placement." (12/24/15) Integra Gold Corp. - Thibaut Lepouttre, Caesars Report More >
"The exploration upside at MAG's Juanicipio project is substantial." (12/23/15) MAG Silver Corp. - Gwen Preston, Resource Maven More >
"AKG's management continues to deliver on its development milestones." (12/22/15) Asanko Gold Inc. - Nana Sangmuah, Clarus Securities More >
"We are initiating coverage on KDX with a Buy rating." (12/21/15) Klondex Mines Ltd. - Don Blyth, Paradigm Capital More >
"VIT's Eagle is a shovel-ready, fully permitted, prefinanced gold project." (12/17/15) Victoria Gold Corp. - Tom Hayes, Edison Investment Research More >
Fortuna Offers Appealing Position in Silver
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Resource Opportunities (04/14/2009)
"Fortuna generated C$8.85 million of cash from its Cayollma mine in Peru last year. Production of 861,176 ounces of silver, 16 million pounds of lead and 23 million pounds of zinc brought in sales revenue of C$26 million net of treatment charges. After non-cash and corporate expenses, net loss for the year was C$0.96 million. The sharp drop in metal prices in the last quarter of the year saw a drop in revenues, taking the company into an overall loss position for the quarter, but it remained cash flow positive at the operating level. Most of the ore processed last year came from the Animas vein, which carries roughly 3 ounces of silver per ton, along with roughly 3% each of lead and zinc. During the year, the company was developing three smaller veins that carry substantially higher silver values. Having achieved their objectives, exploration and development expenditures this year will be much less than last year. A mill expansion and upgrade is also nearing completion. That million dollar program will boost throughput from 1,000 tons per day to 1,200 tons per day. In addition, they will now have the ability to recover copper, which will add to the total revenue. In Mexico, Fortuna continues to advance its San Jose silver-gold project, located in Oaxaca. The company now holds a 100% interest in the project, having acquired the company that held a minority interest. An earlier resource estimate outlined an indicated resource of 17.7 million silver equivalent ounces and an inferred re-source of 49.1 million silver equivalent ounces. Since that estimate, an additional 113 holes were drilled. An updated re-source estimate is expected in the second quarter of this year, with a large portion of the inferred resource being upgraded to the indicated category. The company had $36 million of cash at the end of 2008. With feasibility work advancing at San Jose and production levels ramping up at Caylloma, Fortuna is an emerging producer that offers shareholders a very appealing position in the silver market." |
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