The resumption and increased production capacity at Dalny and Golden Quarry mines helped Falcon Gold register $1 776 560 profit in nine months to September 30.
For the twelve months ended December 2010, the gold mining firm recorded a loss of $2 426 208.
During the period under review, Falcon Gold recorded revenues of $11 585 427 compared to $1 688 903 for the year ended December 2010.
Mineral production expenses increased in the nine months to $8 681 634 compared to $3 236 153 last year.
Company executive Ian Saunders said output at Dalny Mine and Golden Quarry is expected to increase by 75% and 50% respectively.
“The resumption and anticipated growth of underground operations at the Dalny Mine, coupled with the continued strong gold prices that are currently prevailing, means the improvement seen in your company’s performance over the last nine months should continue in 2012,” said Saunders.
He said the mining firm was looking forward to increasing exploration activities in 2012.
“We continue to review the exploration results achieved to date, as well as the new operating data we are generating, to see how it may positively impact our understanding and design of the phase three ‘growth’ phase of the recovery programme previously reported,” he said.
Saunders said Falcon Gold entered into an agreement with its sister company in September — Olympus Gold Mine — to treat open-pit material from Camperdown Mine at Golden Quarry plant, which is expected to result in increased output and profit as a result of increased plant capacity.
He said requisite upgrades and replacement equipment for the leaching plants to cater for increased milling capacity, at both Dalny and Golden Quarry, was nearing completion.
Saunders added replacement of old and obsolete compressors at both mines had also been undertaken.
Falcon Gold is owned by Canada-based New Dawn Mining that has its eyes on an annual target of 100 000 ounces of gold by 2014.