Alta doubles earnings for quarter

With excellent drill results reported from the Olinghouse deposit in Nevada, Alta Gold (ALTA-N) enjoyed a spectacular second quarter.

For the 3-month period ending June 30, the company reported a 44% increase in revenue to US$5.2 million. Net income for the period totaled US$975,000 (or 4 cents per share), compared with US$467,000 (2 cents per share) for the same period last year. It was the ninth-consecutive profitable quarter for the company.

For the first six months of the year, Alta earned US$1.8 million (6 cents per share) on revenues of US$10.4 million, compared to US$3 million (11 cents per share) on US$6.3 million for the first half of 1995.

Gold production for the second quarter rose 25% to 13,374 oz. For the half-year, the company produced 25,791 oz. gold.

At present, the company is focusing on the Olinghouse gold deposit, 30 miles east of Reno, where drilling has confirmed high-grade intersections into the Gold Chain oreshoot. Drill hole OH-250 hit 165 ft. grading 0.68 oz. per ton, including a 40-ft. interval of 2.56 oz.

The company has drilled more than 80 of 400 planned holes. Further results should significantly increase reserves for the deposit, which now stand at 9.7 million tons grading 0.036 oz. gold.