Cathedral Gold Reports Results for the Six Months Ended June 30th, 1997.VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Aug. 21, 1997-- Cathedral Gold Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). CAT.) Financial Cathedral reports a net loss of $494,000 ($0.04/share) for the second quarter ended June 30, 1997 and a net loss of $912,000 ($0.07/share) for the six month period. This compares with a net income of $595,000 ($0.04/share) for the second quarter of 1996 and a net income of $345,000 ($0.03/share) for the six month period of 1996. The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the 1997 second quarter was $360,000 compared to an operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $712,000 for the second quarter of 1996. The six month operating loss for 1997 was $594,000 compared to an operating income of $568,000 for 1996. The operating losses for 1997 are related to lower gold prices, low gold production at the Company's Sterling Gold Mine in Nevada and non-recurring expenses related to placing the Sterling Gold Mine on standby, including laying off underground mining crews. Gold sales revenues for the second quarter of 1997 were $372,000 on sales of 792 ounces of gold at an average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. of US$332/ounce (Cdn$470) compared to revenues of $2,627,000 from sales of 5,004 ounces of gold at an average selling price of US$382/ounce (Cdn$525) for the comparable period of 1996. Revenues during the first six months of 1997 were $1,139,000 on the sale of 2,402 ounces of gold sold at an average selling price of $343/ounce (Cdn$474). This compares to revenue of $4,371,000 in the first six months of 1996 from the sale of 8,178 ounces of gold sold at an average price of US$388/ounce (Cdn$534). The Sterling Gold Mine was placed on standby in May 1997 due to low levels of mineable ore reserves. Gold production is continuing from a low grade stockpile stock·pile n. A supply stored for future use, usually carefully accrued and maintained. tr.v. stock·piled, stock·pil·ing, stock·piles To accumulate and maintain a supply of for future use. and from continued leaching of inventory on the heap leach pads. During the three months to June 30, 1997, cash costs of gold produced increased to US$605/ounce and the average for the six months to June 30, 1997 increased to US$471/ounce. This compares to cash costs for the second quarter of 1996 of US$216/ounce and cash costs for the first six months of 1996 of US$267/ounce. The reductions in staff at the Sterling Mine completed during May and June 1997 have significantly reduced operating costs operating costs npl → gastos mpl operacionales as cash costs are expected to return to approximately US$325/ounce for the remainder of 1997. Reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. work at the mine is underway and these costs are being expensed as incurred in conjunction with residual leaching from the heap leach pads. Kaburi-Eldorado Project, Guyana On June 30, 1997, Cathedral announced an agreement with Omai Gold Mines for the exploration and development of the Hicks Hicks , Edward 1780-1849. American painter of primitive works, notably The Peaceable Kingdom, of which nearly 100 versions exist. gold deposit, Guyana. Cathedral has calculated a geological resource at the Hicks deposit of 3.1 million tonnes grading 0.06 oz/t gold or 187,000 ounces down to the 75 metre depth level. The deposit remains open down pit and along strike. The Omai agreement represents a significant step towards developing the gold resources in the Kaburi district including the Hicks deposit. Under the agreement, Omai has made an initial payment to Cathedral of US$250,000 and is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to complete a US$500,000 exploration program during the first year. Omai may purchase the Hicks property by completing a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. and paying to Cathedral US$13/oz of gold in proven and probable reserves contained in the feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. , or making a payment of US$2 million. Omai will have up to three years to complete the purchase provided they carry out a minimum US$500,000 exploration and development program at the Hicks deposit each year. Cathedral continues to hold 8,100 hectares (20,000 acres) of mineral rights outside the Hicks agreement, including the nearby Tallman property. The development of the Hicks deposit utilizing the Omai infrastructure has obvious significant advantages. The agreement with Omai represents an excellent step toward maximizing shareholder value from the Hicks deposit and Cathedral's projects in Guyana. Other Projects Significant exploration programs are planned during 1997 on Cathedral's properties by farm-in partners. At the Company's Lady property in Honduras, Navigator Exploration is planning a sampling and geophysical ge·o·phys·ics n. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. program starting in September 1997 under a $2 million farm-in agreement. Porcher Island Porcher Island is an island in the Hecate Strait, British Columbia, Canada. It has an area of 522 km². Coordinates: Geography With an area of 200 square miles, Porcher Island Gold Corporation is continuing with its review of recent drilling completed at the Porcher Island gold property, B.C., and further exploration is planned. At the Sterling Mine a review of all the exploration data is ongoing with the objective of identifying targets for increased reserves. Management Change Cathedral also announces that it has accepted the resignation of R. Michael Jones Mike or Michael Jones may refer to: In sports:
Mr. Jones is resigning to pursue other opportunities in the mining industry. He will remain on Cathedral's Board of Directors and assist in every way possible during the transition to a new president. CONTACT: Cathedral Gold Corporation R. Michael Jones, 604/684-4659 |
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