“Despite the fact that we have undertaken a very ambitious ore reserve development program, we are shipping concentrates to Japanese and U.S. smelters and generating revenues,” said Jack Kendrick, president.
The company reported a net loss of $3.75 million(US) or 23 cents a share for the year (fully diluted) which includes substantial non-recurring idle Bunker Hill mine costs, non- recurring start-up costs, maintenance costs for the Crescent silver mine, refurbishment of the 18,000 ft crosscut between the Bunker Hill and Crescent mines, and the write- off of exploration costs related to the Dreamer gold property in Nevada.
Kendrick emphasized the company is “expending mine start-up costs and taking an earnings hit now. This will eliminate any burden on future earnings.” He added that the mine and concentrator operated on a break-even basis during December, its third month of production. Outstanding debt of $1 million was repaid last year and year-end cash balance more than doubled to $1.7 million.
In a corporate brochure being prepared by the company “mineable” reserves are said to be 2.3 million tons grading 2.87% lead, 6.36% zinc and 1.57 oz silver for the Bunker Hill mine. But a reserve inventory prepared by Wright Engineers of Vancouver divides these reserves into three categories: proven (460,000 tons), probable (988,000 tons) and possible (913,000 tons). Mineable reserves usually require a formal mining plan and they are generally proven. At the higher throughput rate, the proven reserves would be mined out in a year.
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