Gold recoveries at record levels for Wharf Resources

In the first quarter, the South Dakota gold properties of Wharf Resources operated at record levels, says its chairman, Alan Farmer. During the winter period some 4,356 oz of gold was recovered by treating ore heaps with heated solution.

Operating profit for the period was $128,000(US) or 1 cents per share compared to a loss of $153,000 or 2 cents in the same period the year before. When including non-recurring charges relating to the retirement of gold purchase warrants and the repayment of long-term debt, net loss for the quarter was $104,000 after the preferred dividends, he notes.

As of May 15, Wharf had approximately $1 million(C) in outstanding debentures which will be redeemed this quarter. Following the debenture conversions and the exercise of common share purchase warrants, the company will have approximately 15 million shares issued, shareholders’ equity of $30 million, and a working capital of $12 million, including $10 million in cash and short-term securities, he claims.

The company is negotiating a gold/currency revolving line of credit with a major international financial lender. This will be used to optimize production at its South Dakota properties and to “take advantage of opportunities for growth in the exploration for and production of precious metals,” he states.

Noting that Wharf had “a record profit during April,” he confirms that a “strong profit performance is anticipated for the balance of the year” based on current gold prices and production. The company is also giving consideration to the institution of a dividend policy, he adds.