Orofino looks to Scadding for improved balance sheet

But the 52%-owned Northgate Exploration (TSE) subsidiary, is hoping that gold production at its Scadding Twp. property near Sudbury, Ont., will bolster Orofino’s balance sheet this year. Orofino recently reported a net loss of $624,846 or 3 cents per share for the year ended Sept 30, 1988, compared to net income of $159,521 or 1 cents per share during the same period in 1987.

The company produced 4,680 oz gold from stockpiled ore at the Scadding property in 1988. It expects to produce an additional 10,000 oz gold over the next 20 months.

“This operation will provide a small, stable source of cash flow that will enable the company to pursue other exploration and joint venture opportunities,” said Vice- president Gerald Harper.

He also has high hopes for Orofino’s Coronation Gulf joint venture gold project in the Northwest Territories, where some encouraging drill results have been produced. Results included a 75.6-ft intersection in the G vein

which averaged 0.35 oz gold per ton. Contained within the same intersection was 43 ft of 0.42 oz.

“While it has been demonstrated that the Coronation Gulf property hosts widespread gold mineralization, these are the first significant indications of high grade mineralization over substantial widths,” said Harper.

Under an agreement with Canuc Resources (TSE) and Dore-Norbaska Resources (TSE), Orofino can earn a 40% interest in the Coronation Gulf project by spending $2.9 million.

At Orofino’s wholly-owned Swayze gold property southwest of Timmins, Ont., the company is looking at a number of production alternatives after completing a $3.8- million underground exploration program.

Proven, probable and mineable reserves to a depth of 340 ft stand at 136,500 tons grading 0.203 oz gold per ton. Below the 340 ft level, the company has outlined geological reserves of 1.3 million tons grading 0.11 oz. That includes 500,000 tons of grade 0.18 between the 340 and 950 ft levels.

Orofino is discussing the possibility of building a mill in a joint venture with another company in the area. If those discussions break down, Orofino could decide to go it alone or have Swayze ore custom milled.

]]>