Vancouver-based Canamax Resources (TSE) may be without an operating mine, but at least the former gold producer is going about its business with a debt-free balance sheet.
With $14 million worth of debt at the start of 1991, Canamax finally cleaned up its books by selling its Bell Creek mine and mill to Falconbridge Gold (TSE) last December, said Chairman Wayne Lenton at the company’s recent annual meeting in Toronto.
He said Canamax’s other Ontario gold mine, the Kremzar near Wawa, is being held on care and maintenance pending higher metal prices. The former Ketza River gold mine in the Yukon also remains on care and maintenance after Toronto junior Wheaton River Minerals (TSE) cancelled plans to purchase the mine and mill.
Lenton said Wheaton representatives had backed out of the deal after poor weather conditions in the Yukon prevented them from completing the due diligence process.
After a loss of $4.1 million in 1991, compared to losses of $49.6 million the previous year, Canamax is looking to exploration on its Matheson property in Ontario and Copper Canyon project in northwestern British Columbia. Under option to Noranda (TSE), the 14,885-acre Matheson project adjoins the Freewest Resources (TSE) and Hemlo Gold (TSE) gold discovery at Harker-Holloway, Ont. In 1991, highlights included an 18-ft. intersection averaging 0.14 oz. gold per ton in an area about one mile west of the 42 East zone which hosts 65,101 tons of 0.17 oz.
Be the first to comment on "Canamax eliminates its debt, hopes for higher gold price"