Golden Giant mine exceeds expectations

The Golden Giant gold mine in Ontario’s Hemlo gold camp continues to produce at levels exceeding predictions, reports Golden Sceptre Resources .

The first mine in the famed camp to produce gold, pouring its first bar April, 1985,, Golden Giant is a joint venture of Noranda Inc. , the operator with a 50% interest, and Golden Sceptre with Goliath Gold Mines sharing the remaining interest.

Ore production during May of this year was the best yet at 2,215 tonnes per day and graded at an average of 0.38 oz gold per ton, says Golden Sceptre. Production should reach capacity of 3,000 tonnes per day by 1988.

Gold bullion production in May was 22,688 oz for total production during this year of 100,235 oz.

This production resulted in mine operating revenue of $7.44 million during May and a 5-month total of $32.31 million. Golden Sceptre says these amounts are credited to the operator, Noranda, until such time as all pre-production capital and development expenditures, post-production capital expenditures plus related interest charges are recovered.

Therefore, says Golden Sceptre, no portion of these revenues is included in its own statement of earnings.

The company reports net earnings of $57,250 for the three months ended May 31 compared to $86,082 net earnings posted in the same period last year. Cash and short term investments at the end of this May 31 stood at $3.2 million, down from $3.6 million at the end of the same period last year.

Golden Sceptre says it will be changing its fiscal year end from Feb. 28 to June 30. Audited financial statements covering the 16 months ended June 30 will be presented at the company’s annual meeting to be held this fall.