WGE Holdings Corporation’s recently acquired Indonesian gold operations generated revenue of US1.02 million in the June quarter compared with $279,000 for the preceding seven months since the company’s inception. Net profit for the quarter was $422,000 compared with $65,000 for the preceding period.
The US-based company, which will be renamed Consolidated Gold Holdings Corp, recently completed the process of reorganisation and integration following its acquisition of an established and operational gold production platform in South East Asia.
WGE operates two independent gold production facilities in northern Sulawesi with a total reserve area exceeding 60 hectares, and monthly production capacity of 15kg, or about 500 ounces, of 99% pure gold.
Gold is processed through an established cyanidation-based gold processing facility, including more than 40 ball mills, five flotation tanks, state-of-the-art tailing facilities, on-site gold smelting, and administration and office buildings.
This operation complements the company’s heap leaching facility operating off a 3500-tonne capacity leach pad, which was recently upgraded with a state-of-the-art carbon filtration plant, new plumbing and water supply and office facilities.
The gold operations are in a high grade volcanic hosted ore deposit which stretches in an arc across the northern part of Sulawesi, an area originally surveyed and exploited by Newmont Mining.
WGE chairman Herbert Adamczyk said, “I am very pleased to be able to report an inaugural profit for our recently acquired gold production operation. As we continue the process of increasing output at our existing facilities and bringing new production on stream, we anticipate continued healthy increases in revenue and profit for the remainder of the year.
“We believe uncertainties in the global economy will underwrite continuation of the upward pressure on the gold price, which has now increased by 25% during the past six months. Our operations enjoy a very low production cost of approximately $500 per ounce.
“Against this background, we believe that a firm gold price, combined with our scheduled acquisitions of producing facilities in Indonesia and the Philippines, including a producing property with one million ounces in estimated reserves, will provide a healthy return during the next two years.”