Canadian Mining Journal

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Leagold’s strong start at Los Filos gold mine



VANCOUVER — Leagold Mining (TSXV: LMC) is navigating a six-month transition period at the Los Filos heap leach gold mine in Mexico. The company acquired the asset from Goldcorp (TSX: G; NYSE: GG) in early April for US$350 million in cash and shares.

On Aug. 10, Leagold reported its inaugural quarterly results headlined by adjusted net earnings of US$6.4 million, or US6¢ per share, and all-in sustaining costs (AISC) of US$989 per ounce. Los Filos produced nearly 44,000 oz. of gold between April 8 and June 30, while gold sales were pegged at 54,000 oz.

The company is working to transition the mine into a stand-alone asset, while introducing what it calls “substantially new management,” as well as “numerous operational improvements and capital programs.”

Leagold said it would take about six months to implement administrative changes and operational upgrades.

Continue reading at The Northern Miner.