Timmins Gold Corp. (TSE:TMM) reported Wednesday preliminary production results for the first operating year of its San Francisco open pit gold mine in Sonora, Mexico, selling a total of 65,774 ounces of gold.
For the 12 months ending March 31, the company processed an average of 12,087 tonnes of ore per day, hitting record daily production in the most recent quarter, with a total of 13,415 tonnes of ore per day.
Timmins said the construction of a new crushing module is scheduled to be completed in July, which should increase the crushing capacity to 18,000 tonnes of ore processed per day.
The capacity boost is also expected to allow the ramp up to targeted production of 100,000 gold ounces per year, at an anticipated life-of-mine cash cost of around US$489 per ounce.
For the last quarter, the company sold 18,755 ounces of gold, and recovered 24,088 ounces, for a total of 82,640 recoverable gold ounces during the year.
"Management is extremely pleased with the results from our first year of operations. The operations team has delivered continued operational improvements quarter over quarter," said CEO Bruce Bragagnolo.
During the 12 month period, a total of 22.03 million tonnes were mined, at an average grade of 0.851 g/t gold.According to a recent NI 43-101 compliant report, the base case net present value of the mine, calculated at a discount rate of 8% and a gold price of USD $1,000 per ounce, is roughly US$163.1 million, after tax.