A summary of mine-by-mine operating results can be found on the final page of this press release.
Chapada produced a total of 33,392 ounces of gold in the first quarter compared with 27,794 ounces of gold in the same quarter of 2010, representing a quarter-over-quarter increase of 20%. Production of copper from Chapada of 38.5 million pounds was 30% higher than the production of 29.7 million pounds of copper during the comparable period in 2010.
Higher production of both gold and copper in the quarter compared with the first quarter of 2010 was mainly due to an increase in ore mined and ore processed. The Company began operating a new fleet of large trucks in the first quarter of 2010. Operating efficiency has developed since then with experience in operating the large trucks which has contributed to the increase in productivity. The Company also took measures to improve operating efficiencies during the rainy season compared to that of the prior year.
Subsequent to the quarter end, a $32.5 million shipment comprised of 11,000 tonnes of metal concentrate was made, which will positively impact second quarter earnings.
Production of gold and copper at Chapada in 2011 is expected to be in line with guidance.By-product cash costs for the quarter were negative $2,615 per GEO, compared with negative $1,876 per GEO for the same quarter of 2010. Higher by-product cash costs credits reflect the continuous strength of copper prices resulting in lower by-product cash costs. Co-product cash costs for the quarter were $286 per gold ounce and $1.21 per pound of copper which compared with $346 per gold ounce and $1.24 per pound of copper for the same quarter of 2010.
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