LIMA, Peru & PARAMARIBO, Suriname & Las Vegas--(BUSINESS WIRE)--
The Graystone Company (GYST) announced today that the Company’s mining operations generated approximately 865.9 grams of gold during the month of August 2014. That is the second best month in Company’s history.
The Company also estimates that its unaudited gross revenue for August 2014 was $73,075.00 This includes gold produced from bulk sampling at all of its operating gold camps and its successful Copper Campaign #2. This compares to its Q2 2014 total unaudited revenue of $123,611.00. The Company anticipates it will have record revenue in Q3.
The Company’s copper project, campaign #3 will go into production as scheduled on September 15, 2014. The Company believes Copper Campaign #3 will be completed on or before November 21, 2014. The Company has already identified 75-100 tons of high grade copper/gold ore for bulk ore purchase and anticipates continued production from its Virgen Del Carmen copper claim in Peru’s Andes Mountains.
The Company has received numerous questions about declining gold and copper prices and how it is affecting its operations. The Company responds with the following:
1) The Company's bulk gold and copper purchase program is mostly unaffected by fluctuating copper and gold prices. The Company negotiates a 20-30 percent discount at current market prices. The lower prices actually create a larger demand for producers to sell their ore at a discount because lower prices strain their cash flow, creating operational challenges. The Company feels this is an opportunity to increase its bulk ore purchase program.
2) The Company has decided to consolidate 5 gold mining camps into 3 camps. The Company identified the camps that have the highest concentration of gold and the lowest cost to produce.
3) The Company will continue to explore around its current operating camps but to help control costs it will not seek out new locations at this time. Currently, its 3 operating gold camps collectively sit on over 3,000 HA and are located in Peru and Suriname.
4) The two largest equipment purchases the Company has made in the last 18 months are its DAF 10 wheel dump truck and its new Doosan excavator. The total monthly financed expenditure for these two items are over $17,000.00 USD per month. The Company is happy to announce that it has accelerated its payments on these two capital investments and the DAF dump truck has been paid in full and its Doosan excavator will be paid in full on January 6, 2015. This amounts to a reduction of yearly debt payments in excess of $204,000.00
5) The Company recently purchased a centrifuge and 2 gravity shaker finishing tables for one of its Suriname sites using the profits from Copper campaign #1 and #2. The Company anticipates it will see a 10-20 percent increase in its gold capture rates in Suriname while maintaining its commitment to being mercury and toxic chemical free at all of its company operated mining sites.
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