Westmin trims quarterly loss

Although still not out of the red, Westmin Resources (TSE) is continuing to pare losses stemming from its mining operations in British Columbia.

The Vancouver-based company posted a net loss of $2.54 million for its latest quarter ended June 30, reduced from the net loss of $5.8 million for the corresponding period in 1991.

The company said total property costs (including capital) were down $2.6 million for the quarter at its Myra Falls polymetallic mine near Campbell River, B.C. But production was also down, causing the downward trend in unit costs to reverse and bring the year-to-date costs up to $53.75 per tonne. On a more positive note, Westmin reported that exploration on its Battle and Gap zone discoveries continued satisfactorily. By the end of the quarter, minable reserves at these zones were 1.7 million tonnes grading 2.2% copper and 10.9% zinc, with significant precious metal credits.

Record production of 16,193 oz. gold (net equivalent) was reported for the quarter at the Premier mine near Stewart, B.C. Full-scale mining and milling are now suspended, but production at 25% of capacity will continue based on a small stockpile of open pit ore supplemented by underground and custom ore. Westmin recently sold for $250 million its Noranda preferred share investment which it received in 1990 after completing its withdrawal from the petroleum sector.

The bulk of the proceeds will be used to redeem $78 million of Westmin Class A preferred shares due September of this year, and to repay a $120 million operating loan to Brascan.