Starcore says new management is delivering at Mexico operations
Starcore International Mines Ltd. [SAM-TSX] on Monday February 19 announced third quarter production results at its Mexican operations.
During the third quarter of fiscal 2018, ended January 31, 2018, the company said a total of 65,598 tonnes was milled at the San Martin Mine in Queretaro at an average grade of 1.23 g/t gold and 16.46 g/t silver, resulting in production of 2,405 gold equivalent ounces.
Mill recoveries averaged 83.7% for gold and 53.3% for silver. The equivalent gold ounce calculation is based on the average gold:silver ratio of 77.3:1 during the quarter.
During the third quarter, the Altiplano Facility received approximately 176 tonnes of concentrate, containing approximately 222 ounces of gold and 35,634 ounces of silver. During the quarter ended January 31, 2018, Altiplano sold 269 ounces of gold and 23,561 ounces of silver.
“Our new management team at Altiplano and San Martin has led to positive changes,” said Starcore President Robert Eadie. “At our San Martin Mine, we are implementing planning and development that will aid future production and the life of the mine,” Eadie said.
At Altiplano, we are focused on securing profitable contracts that are congruent with the business model of our company. We are enthusiastic that these changes will be reflected in our near future results,” he added.
On Monday, Starcore shares were unchanged at 24.5 cents, leaving the company with a market cap of $12.04 million. The 52-week range is 60 cents and 23 cents.
Starcore’s strategic operations across the North American continent range from grass roots exploration to production and processing.
The flagship property is the San Martin gold and silver mine, which has been in production since 1993. It currently operates at 850 tonnes per day.
The project is located 50 km east of the City of Queretaro in Queretaro State, and about 250 km northwest of Mexico City.
Acquired form Goldcorp Inc. [G-TSX, NYSE-GG] in February 2008, San Martin is an underground epithermal deposit with a gold quartz-based limestone.
The mine sits on a 100%-owned claim package of 12,992 hectares, a position that offers the upside of exploration and the possibility of discovering the source of the current mineralization.
Atiplano is a toll processor located in Matehuala. It offers advanced toll processing for precious metals to numerous small and medium-sized producers in the immediate area, and is generating revenues based on treatment charges, refinery charges, gold and silver recoveries, and the sale of treated concentrate tailings.
The operation is designed to process at a rate of 25 tonnes per day. But it can be expanded to 50 tonnes per day with the addition of more leach tanks. Altiplano benefits from the location in Matehuala, where 20 small and medium sized miners are consistently producing high grade concentrates.