Vane Minerals (LON:VML) revenues rose sharply in 2011 as the performance of its Mexican gold and silver operations improved significantly.
Turnover increased by 44 per cent to £3.68 million (£2.56 million), with net losses for the year reducing to £1.6 million from £2.37 million.
In Mexico, lower than expected production from the Diablito mine was offset by higher than expected grades and recovery rates from its Ruiz joint venture. The Diablito mine is to be closed this year.
Total production in Mexico was 2,706oz of gold and 73,384oz silver at a at a direct production cost of $743.45 per equivalent oz gold or $16.23 per equivalent oz of silver.
Vane added that in the fourth quarter, Mexicos contribution covered the entire costs of the company.
The company plans to use cash generated in Mexico to fund a potentially company-changing drilling programme on its copper assets in New Mexico and Arizona.
The group discovered what it says is a clearly identified copper-molybdenum porphyry system ay McGhee Peak at the end of 2011 and will test that and other potential targets further in the current year.
VANE is also exploring for uranium in the US, where it is focused on state-owned not Federal land.
It said today pre-feasibility work continues at the Wate uranium project, while other lead projects going into 2012 include the Rose pipe where work will focus on establishing a NI 43-101 resource.
David Newton, chief executive, said: The first drilling results from McGhee Peak were encouraging, whilst the qualities of our Mexican assets can now be demonstrated over a meaningful period.
VANE is in a robust position both operationally and financially, with the downside risk mitigated by the cash flow generated in Mexico and the profile of our exploration assets strengthened.”
VANE ended the year with a cash balance of £2.3 million.