Caledonia’s Spanish subsidiary posts record profit

Filon Sur S.A., the 25%-owned Spanish gold mining subsidiary of Caledonia Mining (TSE), achieved a record net profit in the third quarter.

Improved throughput and reduced operating costs enabled the heap leach operation to rake in more than $591,000. It is situated near the southwestern province of Huelva.

Last year, Filon Sur treated 366,000 tonnes to produce 23,000 oz. gold. At the end of 1992, reserves stood at 4.4 million tonnes grading 0.05 oz. gold per tonne. Recent drilling has added a further 500,000 tonnes to that figure. In other news, Zalakeramia RT, a publicly traded Hungarian tile manufacturer, has proposed merging with Renaissance Stone Masonry, Caledonia’s indirectly owned Hungarian marble subsidiary.

Should the merger occur and Caledonia opt for a cash buyout, then its 75%-owned subsidiary Centurion East European Mining would receive an initial payment of $1.2 million and up to $1.9 million in early 1995. Renaissance’s assets include 11 quarries, six processing plants and three masonry workshops.