Vancouver-based Bear Creek Mining has announced a revision to its production forecast for the Mercedes mine, in Mexico, as the operation fell short of expectations for gold output during the third quarter.
“Mercedes did not achieve the level of gold production that we had anticipated for the third quarter,” said president and CEO Eric Caba.
“While the efforts we have made at Mercedes to increase development, decrease costs, eliminate operating inefficiencies, and improve staffing have been largely successful, it is taking longer than anticipated for these measures to be reflected in production,” added Caba.
As a result, Bear Creek revised its gold production guidance for 2023 to between 39 000 oz and 45 000 oz.
Caba said the company was taking additional action to identify and overcome remaining barriers at Mercedes, which he said had the elements necessary to improve production.
During the third quarter, Bear Creek produced 9 158 oz, compared with 9 199 oz in the second quarter and 12 025 oz in the first quarter of the year.
Bear Creek recently entered into restructuring agreements with Equinox Gold and Sandstorm Gold to refinance and extend the maturity date of near-term debt and to significantly reduce the number of gold and silver ounces payable monthly under Mercedes' stream obligations. These agreements will improve the company's financial condition and generate additional cash flow, which along with funds raised in the company's recent equity financing, will allow the firm to re-invest in the near- and long-term success of Mercedes.
Specifically, Bear Creek said it would deploy funds on underground and surface exploration to increase the density of delineation drilling at the Marianas and Rey de Oro deposits and to further test brownfield and greenfield exploration targets where low angle, listric/detachment faults intersect the near-vertical veins that dominate the Mercedes district.