Vancouver — Australian-based
The loss is considerably greater than the A$6.7 million shortfall reported for the first half of the year.
For all of 2001, the Perth-based nickel-laterite miner incurred a loss of A$83.4 million, compared with a loss of A$5.8 million in the previous year.
Driving the losses is the slow progress at Anaconda’s Murrin Murrin nickel operation in Western Australia. The mine is operating at 60% capacity and processing about 80 tonnes nickel per day.
The ramp-up of operations is reportedly on schedule, though the target date for full commercial production has been moved back several times. In 1999, the company was predicting full production by early 2000.
Anaconda’s share price has been eroding since September 2000, when it reached a high of A$4.08. It fell dramatically from A$2 at the beginning of March 2001 to a low of A$0.71. This was the lowest level since April 1996.
Mining giant
Kaiser won’t reopen smelter
Denver — Citing weak metal prices,
The company agreed to close the complex earlier in the year in response to concerns over electricity availability in the wake of the California energy crisis.
“After careful analysis of market and contract prices for metal and electricity, we have concluded that smelter restarts do not currently make economic sense for Kaiser,” says company chairman Raymond Milchovich. “We will continue to monitor these conditions and be alert to potential restart opportunities.”
The company was hoping to restart the smelters in October at 110,000 tonnes aluminum per year, down from a capacity of 273,000 tonnes.
Rio Tinto drops Paul Isnard
Having spent US$830,000 on exploration, London-based
The property contains a preliminary resource of 6.2 million tonnes grading 2.8 grams gold per tonne.
Rio could have earned a 40% interest in the project from
Recent exploration was funded by Guyanor via a loan from parent company
Guyanor says it is in talks with several companies interested in forming a new joint venture at Paul Isnard.
River finances shaft sinking
The company completed a fully subscribed rights offering of 5.2 million units priced at $1.05 apiece for gross proceeds of $5.5 million. One unit comprises one share and half a warrant, with each full warrant exercisable into one share for $1.35 each, until Oct. 31, 2002.
At last report, the shaft had been sunk to a depth of 450 metres; the planned depth is 505 metres.
The shaft should be completed this fall, with full hoisting to follow in early 2002.
Gold production for 2001 remains on target at 87,000 oz., with output in the second quarter exceeding 23,000 oz.
Mining is focused on the 6 zone, where grades are significantly higher than average. Preliminary estimates for 2002 production are 75,000 oz. gold.
St Andrew adds to Eskay Creek
The company has acquired, for $450,000, a half-interest in privately held GlenFred Holdings, which holds land in the Eskay Creek camp.
Combined with the late-May acquisition of a 29.8% interest in
The company can boost its stake in Heritage Explorations to about 37.5% by exercising warrants that it holds. Heritage’s holdings include the 840-acre SIB claims, which are adjacent to, and along strike from, the Eskay Creek mine. Exploration from 1988 to 1991 defined a strike length of more than 5,500 ft. for the Contact Mudstone horizon.
Drilling at SIB in 1990 led to the discovery of the Lulu zone, which returned a 463.9-ft. intersection grading 0.42 oz. gold and 30.91 oz. silver per ton.
The company also owns the Polo claims (eight mineral claims), about 4 km to the south. The host horizons of the Eskay Creek deposits extend through these claims.
Preliminary chip sampling in the early 1990s returned up to 0.11 oz. gold and 2.51 oz. silver per ton.
Two miles north of the Eskay Creek mine are the Skookum claims, which have seen only limited exploration.
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