Bullmoose gold helps Terra Mines move into black

Terra Mines reports a “substantial improvement in financial results,” due in part to the elimination of operating expenses at the company’s silver properties and income from its Bullmoose gold project, both of which are located in the Northwest Territories. Net income for the three months ended Sept 30 was $91,000 compared to a loss of $311,000 the previous year. The 9-month loss was $73,000 compared to approximately $1.6 million the year before. Working capital at the end of the period was $2.1 million, notes President Bill Kocken.

A total of 14,561 tons of ore was processed by the Bullmoose pilot mill in the third quarter, yielding 4,416 oz gold with an over-all average grade of 0.3 oz. The company anticipates a further 4,500 oz of production in the fourth quarter. A new decline has been collared on the No 7 vein which was discovered by surface exploration and diamond drilling.

Terra is very bullish on its gold project in the state of Sonora, Mexico. Terra and its Mexican partner are rolling their respective interests in a group of properties into a new company. It will be owned 60% by Industrias Penoles and 40% by Terra. The Mexican company must spend $484,000(US) on the properties, says Terra.

Exploration results to date indicate a potential reserve of 10 million tons and recent sampling suggests the grade could range from 0.075 oz to 0.117 oz gold per ton. Initial results suggest the material is heap leachable and no crushing would be required.