Gold miner Angel Mining said losses for the year widened as it fell behind on its implementation plan and overran on costs at Nalunaq, Greenland's first gold mine.

The group, which mines gold, zinc and lead, said pre-tax losses widened to $7.77m for the year ended 28 February 2011 from a loss of $4.71m a year earlier. No revenue was recorded.

"The year has been a particularly challenging one. We had to build a team capable of taking over from contractors to get the Nalunaq mine and processing plant into production. This has taken several months to achieve and the process of team development is on going. We fell behind on our implementation plan at Nalunaq and we have overrun on costs," the group explained in a company statement.

Operating losses swelled to $3.38m during the period from a loss of $1.65m previously.

The board does not anticipate paying any dividends in the foreseeable future.

"The group has learnt important lessons at Nalunaq regarding the logistics and practicalities of operating in Greenland," it said.

Looking ahead Angel said it must take full advantage of its experience to date and of the current strength in the gold market so that, with the continued support of Cyrus, it can maximize cash generation and develop a successful operation at Black Angel.




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CJ

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