Dickenson raising White mine output

A slight increase in gold production at the White underground mine near Red Lake, Ont., helped keep earnings steady for Dickenson Mines (TSE) in 1989. The company recently reported net earnings for the year ended Dec. 31 of $6.06 million or 39cents per share, compared with $6.06 million or 41cents per share in the previous year. The earnings included an extraordinary gain of $1.46 million.

Total gold production at the Red Lake mine increased last year to 75,600 oz., compared with 70,200 oz. in 1988. Unit mine operating costs were maintained at the 1988 level of US$347 per oz., while the average gold settlement price realized by the company was US$426 per oz. for the year.

Projections by Dickenson for the current year call for production at the White mine of 82,200 oz. with an average operating cost of US$306. According to the company, a program of underground mine development and diamond drilling continues to achieve encouraging results.

Operating results for associated gold producer Wharf Resources (TSE) were lower last year, however. Wharf reported 1989 net earnings of US$5.83 million or 30cents per share, compared with US$7.85 million or 42cents per share a year ago. Wharf’s gold production totalled 77,000 oz. last year at a cost of US$180 per oz., compared with 59,500 oz. at a unit cost of US$183 in 1988. The average gold settlement price dropped to US$379 per oz. last year, compared with US$434 per oz. in 1988.

The company plans to further increase its gold production in South Dakota this year by expanding the annual tonnage of ore processed to 3.1 million tons from the current level of 2.3 million tons. Technical revisions to operations and existing environmental permits have been filed with the state authorities. The capital cost of the proposed program is estimated at US$4.2 million, mainly for extensions to the existing leach pads and additions to the mining equipment fleet.

Gold production is projected to increase to 86,000 oz. this year, and 100,000 oz. in 1991, according to Wharf.

Goldcorp Investments, a Toronto- based gold fund company, controls Dickenson Mines, and the latter company is also the major shareholder of Wharf Resources.0500,0211,0307 Dickenson Mines (TSE) Year ended Dec. 3119891988 Revenue (000s)$55,256$46,454 Net earnings (000s)6,0646,063 Net earnings

(per share)0.390.41006 Wharf Resources (TSE)* Year ended Dec. 3119891988 Revenue (000s)$29,421$25,642 Net earnings (000s)5,8327,850 Net earnings

(per share)0.300.42 *US dollars.004