Terra reports earnings loss as Bullmoose project closes

Reclamation work and costs of closing down its Bullmoose project near Yellowknife resulted in a third-quarter loss for Terra Mines of $1.1 million on revenues of $46,000. This compares with a profit of $91,000 on revenues of $146,000 for the third quarter of 1986.

Terra reports a loss for the first nine months of $1.2 million on revenues of $5.1 million compared with a loss of $73,000 on revenues of $344,000 in 1986.

Although Bullmoose was never fully in production, a portable mill on site produced approximately 19,000 oz gold by processing some of the development ore. The company plans to move all equipment and assets and is hoping to sell the property.

Production at the Las Minitas gold heap leaching project in Mexico (owned 40%) could start late 1988, Terra reports.

Drilling has intersected a new high grade vein, the Zorra Negra vein, which runs parallel to the Zobia North zone being considered for the open pit operation (N.M., April 27/87).

Hole No 9 intersected the vein at l05 ft of depth and assayed 0.752 oz gold per ton over a width of 9.15 ft, or 0.391 oz over 13.14 ft. Hole No 10, drilled 1,000 ft from the previous hole, intersected the same vein at 148 ft and assayed 2.865 oz over a width of 7.4 ft. The vein has been exposed on surface for 2,788 ft and is open to the northwest. Consideration is being given to conventional mining of this and other high grade veins on the property.

Metallurgical testing is continuing and the column cyanide leach tests indicate recoveries varying from 73%-95%, dependent upon the crush size and leach time. Areas have been cleaned for the heap leach pads and it is intended to move a pilot processing plant to the property in February.