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Be the first with the news that moves the market- Starcore International Mines (SAM) is implementing cost-reduction strategies in response to falling gold and silver grades
- The company has seen gold and silver grades drop during production over the last two quarters at its San Martin Mine in Queretaro, Mexico
- Drilling exploration carried out by contractors is now being paused while the company completes new geological models of the mine using past data
- It expects a new geological model to be ready by the end of this month, which will define future exploration targets
- Starcore International Mines is down 19.57 percent, trading at $0.18 at 11:14 a.m. ET
Starcore International Mines (SAM) is implementing cost-reduction strategies in response to falling gold and silver grades.
The Vancouver-based precious metals explorer made the announcement Wednesday along with its latest production results.
The company has seen gold and silver grades drop during production over the last two quarters at its San Martin Mine in Queretaro, Mexico, leading to temporary cost reduction measures.
Drilling exploration carried out by contractors is now being paused while the company completes new geological models of the mine using past data.
External geologists have been brought in to support and advise the company’s own geology team. It expects a new geological model to be ready by the end of this month, which will define the exploration targets to continue underground exploration.
The company’s executives say it has managed to reduce costs in all areas of the mine, from geological to administration and management.
“Overall, we have applied cost reductions in all areas of mine and administration. In expectation of the decrease in production, we are reducing costs temporarily to return to our strategy of producing profitable ounces day by day,” said CEO Salvador Garcia.
Starcore International Mines (SAM) is down 19.57 percent, trading at $0.18 at 11:14 a.m. ET.
