Producer digs up more gold but underperforms in March quarter

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 27 Apr 2012   Posted by admin


MID tier gold producer Evolution Mining has found more high-grade gold at its Cracow gold mine in Queensland. A drilling program was conducted about 150m north of known mineralisation and has confirmed the presence of a high-grade epithermal gold shoot. Best intersections from the recent diamond drilling program were: 25.4m grading 6.47 grams per tonne gold
from 611.6m, 13.7m grading 8.01g/t gold from 539m, and 2.3m grading 61.53g/t gold from 505.2m.
The March 2012 quarter brought with it gold discoveries for Evolution, but total gold production fell from almost 90,000 ounces in the December 2011 quarter to 84,122 for the March period. The average gold price achieved also fell, dropping from $1632/oz for the December period to $1604/oz.
Cash costs were up, with attributable total cash costs rising from $1035 per ounce in the December quarter to $1132/oz.
Despite lower production and realised gold prices and increasing cash costs, Evolution posted gold and silver revenue of $136.9 million and cash in the bank rose $3.4 million to $170.9 million at the end of March 2012.
The company was also included into the S&P/ASX200 Index after the S&P/ASX indices were rebalanced in mid March.

 

By Lorna Seatter


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