Nerco Minerals sticking with precious

Speculation that Nerco Minerals wants to get out of the precious metals business has been denied flatly by the company. A few weeks ago Nerco said it was considering the sale of interests in certain properties in Nevada and Colorado which probably fueled the rumors.

But a Nerco spokesman told The Northern Miner the company will concentrate future efforts on large gold producing operations including the Con mine at Yellowknife, NWT., Candelaria in Nevada, and DeLamar in Idaho.

On the auction block is Nerco’s half interest in the Alligator Ridge mine which is operated by BP Minerals. (Nerco has developed a reputation for improving operating efficiencies and profitability at mines it runs. But it’s not in a position to make the changes it wants at Alligator Ridge because BP is operator). Alligator Ridge was acquired in a package of properties sold by Occidental Minerals in 1983. Mine life is estimated at 4 1/2 years but additional exploration potential is said to exist there.

The Taylor silver mine in Nevada and the Victor gold mine in Colorado are also up for sale although they aren’t producing at present. Nerco recently traded a 50% interest in its Elder Creek property (Nevada) for another 50% of the Taylor mine bringing its ownership to 100%. An exploration property in eastern Oregon (Ibex Bald Mountain) is also included in the package as is the Shoshone exploration project in Nevada, a joint venture with Alta Gold.

About thirty or more companies (U.S. and Canadian) have approached Nerco about the properties but no decision has been made on what approach Nerco will take in selling these holdings, the spokesman said. He emphasized they have no intention whatsoever of disposing of Con, Candelaria or DeLamar.