Blackdome making money, paying dividends, too

With only seven and one-half months of production under its belt, Blackdome Mining’s gold project 150 miles north of here has not only been making money but paying dividends as well. Net earnings for that period totalled $4.5 million or 55 cents per share based on gold production of 29.807 oz plus 78,860 oz silver.

The company recently announced a quarterly dividend of 15 cents per share plus an extra 5 cents payable March 23 to shareholders of record at the close of business March 2.

Blackdome is certainly a company that makes money the “old- fashioned way” and its remarkable performance and business philosophy mirror the attitude of management, particularly Carl Ashenburst, a former Noranda vice- president and president of Heath Steele Mines. Interestingly enough, Heath Steele had the property under option from Blackdome at one point but dropped it after an underground exploration program proved inconclusive.

The Blackdome mill has been operating at a sustained rate of 200 tons per day and head grades averaged approximately 0.86 oz gold for the year, one of the highest in the country. At present, the 1,920-ft level is being extended to the north and south and some exceptionally high grade material has been encountered, says Mr Ashenhurst.

In addition, about 20,000 ft of surface drilling is planned this year, mostly on the No 1 and No 2 vein systems, which will hopefully replace reserves depleted by mining and add to inventory.