Placer reports record production

The latest financial and operating results released by Placer Dome (TSE) reveal record gold production and considerable progress being made in the company’s efforts to lower overall production costs.

The company’s share of gold production in this year’s third quarter ended Sept. 30 was a record 462,000 oz. at a cash production cost of US$204 per oz. In the first nine months of this year, production rose to 1.21 million oz. from 1.03 million oz. in the comparable period in 1990. And the year-to-date average cash production cost of gold was US$227 per oz., a decrease of US$15 per oz. from the year-earlier period.

The Vancouver-based international mining company says its gold sales were $672.1 million for the nine months at an average realized price of US$400 per oz., compared with $623.8 million at an average realized price of US$421 per oz. in the year-earlier period after taking into account additional revenues from forward contracts.

A number of operations contributed to Placer Dome’s boost in production. The Campbell mine in Ontario achieved record gold production of 87,643 oz. in the third quarter as a result of higher grades and operation of the pressure oxidation plant commissioned this summer.

During August, the 22.7% owned Porgera mine in Papua New Guinea reached a production milestone of one million ounces gold in its first year of operation. Commissioning of a pressure oxidation circuit to increase gold recoveries began in mid-August, and by mid-October the three autoclaves were fully operational.

Placer Dome said continued development of Porgera is on schedule for completion in September, 1992. A drill program was recently started aimed at identifying new reserves, and the updated reserve estimate is expected in mid-1992.

Another recent highlight was the commissioning of the 16,500-ton-per-day gold and silver processing plant at the 50% owned La Coipa mine in Chile. Commercial production began there in early October, and the mine is expected to produce 52,000 oz. gold and 5.7 million oz. silver this year. In British Columbia, the company is continuing optimization studies of the Mt. Milligan copper-gold deposit in order to complete a feasibility study by the end of this year.

A due diligence review of the Eskay Creek gold project near Stewart is expected to be completed by mid-December, at which time the company will decide if it will proceed to the next project phase under the terms of an agreement with International Corona.

Despite this year’s improved operating performance, Placer Dome reported significantly lower net earnings in 1991 than in the year-earlier period. Net earnings for the first nine months of this year were $53.9 million, compared with $199.8 million in the corresponding period of 1990.