Anglo Dominion improves financial results in ’87

Like many junior explorers across Canada, Anglo Dominion Gold’s (TSE) ability to finance its main projects was hampered by the Oct 19 market downturn. Nevertheless, the Toronto company’s financial position improved considerably in 1987.

Net earnings in 1987 after a provision for deferred taxes amounted to $181,560 or 68 cents per share compared to $84,595 (before an extraordinary item) or 38 cents per share last year.

The 43%-owned subsidiary of Coniagas Mines (TSE) also increased its working capital position at year-end to $1.1 million from $553,028 in 1986. Cash generated from operations increased to $832,650 from $557,541 said President Neil Steenberg at the company’s recent annual meeting in Toronto.

Cash generated ($832,650) from the Missinabie gold property in Leeson Twp., Ont., reduced Anglo- Dominion’s debt load to $350,000 by year-end from $1.35 million. The debt was eliminated by February, the company said.

Under a 2-year smelter contract with Kidd Creek Mines which ended Sept 30, Anglo Dominion shipped 39,917 tons grading 0.161 oz gold from Missinabie in 1987. Payable gold content to Anglo Dominion was 4,159 oz.

According to Steenberg, the company is planning a spring drilling program on the eastern portion of the 15-claim property where drill- indicated reserves still stand at 593,000 tons averaging 0.13 oz.

As reported (N.M., Nov 16/87), Anglo Dominion increased its interest in the Little River joint venture in Newfoundland to 50% by acquiring Coniagas’ 25% interest.

Operator Westfield Minerals (TSE) conducted 7,500 ft of surface drilling at the Baie d’Espoire-area property in late 1987 but results aren’t yet available.

Current exploration was prompted by a late 1986 diamond drilling program that tested a stratabound gold mineralization discovery along a 3-km strike length.

Anglo Dominon also involved in exploration with affiliate Quebec Sturgeon Mines (TSE) and Esso Minerals Canada at Burnt Bush River in the Casa Berardi West area of Quebec.

In 1987 Anglo Dominion spent $52,580 at the Burnt Bush River claims where it can earn a share of Quebec Sturgeon’s right to 49% interest in the property.

In January, Coniagas increased its interest in Anglo Dominion from 37% to about 43% by acquiring 300,000 of the latter company’s common shares for $270,000 cash.