25 Aug Leagold Mining moves through transitional process at Mexican gold mine
Vancouver-based Leagold Mining (TSXV:LMC) has begun making a number of improvements at its Los Filos heap-leach gold mine in Mexico, as it navigates the asset through a six-month transitional period.
Leagold acquired Los Filos, Mexico’s third largest gold mine (based on 2015 production figures), from Goldcorp in early April for US$350 million in a combination of cash and shares.
The miner has renegotiated its mining fleet maintenance contract to improve equipment availability, which has boosted underground production by 25% to 1,100 tonnes per day.
The mine, lying 230km South of Mexico City, produced nearly 44,000 ounces of gold in the recent quarter between April and June 2017, while gold sales were pegged at 54,000 ounces.
“Our transition plan at the site is going very well. We’re in the process of creating a ‘stand-alone’ business and profit centre.” said CEO Neil Woodyer.
“We’ve really made significant progress during the quarter under our new on-site management.
“We’ve decreased operating costs, improved accountability and generated cash flow. We anticipate continued cost and production improvements starting in the fourth quarter, and moving forward.”
Leagold expects the transition phase to be completed by the end of the third quarter.