Xtract Resources (LON:XTR) announced its Chepica mine returned to profitability in May, at least three months ahead of schedule.
The gold and copper miner reckoned earlier this month that the Chepica mine in Chile was three months away from profitability.
The company confirmed today, however, that the mine made US$150,000 profit in May before capital expenditure.
Jan Nelson, chief executive, said: "We are delighted that Chepica has returned to profitability and expect it to deliver on target moving forward.”
Meanwhile, on and off reef development is ramping up with both with the number of ends opening up new areas for stoping increased from one to four off reef and one to three on reef.
“Development is progressing well and we anticipate having three major areas ready for stoping within the next four months, which will greatly improve the flexibility on the mine” Nelson said.
The miner also said two major drill targets have been identified which could extend the life of mine at Chepica.
Nelson said: “If our estimates are confirmed, our planned drilling programme could significantly extend the LOM and we expect to provide a resource update within the next three months."