No need for concern over Tarkwa production

The recent article “Golden Knight, Repadre Capital tie knot” (T.N.M., Jan. 25-31/99), regarding the proposed acquisition of Golden Knight by Repadre Capital, contained the statement that Golden Knight’s 17.5%-owned Tarkwa mine “was targeted to produce 135,000 oz. gold in 1998, and had churned out 48,612 oz. by the end of the third quarter.”

The 135,000-oz. target includes production from both the new surface mine and the older, underground mine. Actual production to the end of the third quarter, as noted in our Nov. 3 news release, was 89,155 oz. — 48,612 oz. from the new surface mine and 40,543 oz. from underground.

In the context of the article, one might infer that Repadre’s offer to the shareholders of Golden Knight was prompted by a production shortfall at Tarkwa. In fact, the mine continues to exceed budget in terms of the grade of mineralization mined, tonnes of ore delivered to the heap-leach pads, and gold recoveries. Since the new surface mine commenced production only in May 1998, total production would achieve the target for calendar 1998, assuming operations continued to run successfully through the fourth quarter.

Repadre’s acquisition of Golden Knight would enable the latter to finance its pro rata share of the recapitalization of the Tarkwa mine and the Phase II expansion now under way.

Paul LaFontaine

Vancouver, B.C.