Viceroy Res. posts loss over 9-Month period in 1996

For the last nine months of 1996, Viceroy Resource (VOY-T) suffered a loss of $39.2 million, or 80 cents per share.

The loss stemmed from a $39.6-Million adjustment in the carrying value of the company’s 75%-owned Castle Mountain mine in southern California. The adjustment, made in the second quarter, was based on a gold price of US$375 per oz.

Situated near San Bernardino, the mine produced 122,192 oz. in 1996, of which Viceroy’s share was 91,644 oz.

Over the 9-Month period, Castle Mountain produced 87,612 oz. at an average cash cost of US$283 per oz.

The mine is estimated to contain reserves of 19.8 million tons grading 0.036 oz. gold per ton. For 1997, production is projected to total 125,000 oz. at an average cash cost of US$275 per oz. A portion of the mill feed will come from high-grade stockpiles.

Cash costs for the following two years will be significantly greater, the company says, unless higher-grade underground deposits are developed.

The average stripping ratio during the five years remaining in the mine’s lifespan is projected to be 3.1-To-1. The average cash cost per ounce is expected to be US$285. The company’s wholly owned Brewery Creek operation — the largest lode gold mine ever built in the Yukon — produced 10,175 oz. in 1996, resulting in total production of 101,819 oz. for the company. The mine poured its first gold in November 1996, and production for the current year is pegged at 186,000 oz.