Silver King, Pacific Silver reactivating U.S. copper mine

The Utah-based companies operated the open pit copper mine from 1972 to 1981, when falling prices forced a shutdown. During that period, one million tons of ore were mined, and more than 15 million lb of copper and 500,000 oz of silver were sold.

Stuart Havenstrite, president and chief operating officer of the two associated companies, said rebounding copper prices now “assure a profitable operation.”

Remaining reserves at the site are estimated at 150,000 tons containing three million lb of copper, with most of the waste rock already stripped off. The company said ore would be mined out during 1989 and 1990 “at an estimated profit of $1 million,” based on current prices.

Ore will be processed in a 600- ton-per-day mill operated by the companies on site. Havenstrite said some 700,000 lb of copper have already been sold forward for delivery to protect against a possible drop in prices.

The companies are also planning confirmation drilling and open pit design work this summer on their Iron Dyke mine located 20 miles from Copper Cliffs. Near-surface reserves are reported at 250,000 tons averaging 1.4% copper, 1.2 oz silver and 0.028 oz gold per ton. According to Havenstrite, ore mined from the deposit could be processed at the Copper Cliffs mill.

Silver King and Pacific Silver made available their U.S. gold properties to an operating company, Alta Gold, last July. Later this year Silver King and Pacific Silver plan to merge, at which time the stock of Alta Gold would be distributed to shareholders of both companies.

The three companies report combined earnings of $9.3 million(US) for the nine months ended Dec 31. Comparable earnings for the same period in 1987 were $10.3 million.

Gold production for the period was 50,380 oz, an increase from 37,659 oz for same period in 1987. The companies are predicting the production of 92,000 oz in calendar 1989 and 163,000 oz in 1990.

Declining gold prices were cited as having an impact on earnings in 1988, as was the joint venture arrangement with Echo Bay Mines which provided Echo Bay with 40% of gold production from the Robertson mine near Ely, Nev. Silver King and Pacific Silver received $175 million from the transaction.

Silver King and Pacific Silver, with cash assets of over $14 million, said they will focus operations on base metal properties held in Nevada and Idaho.

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