Cominco Res. records operating profit

The Glenbrook Nickel, Buckhorn and Maria operations achieved a combined operating profit of $6.79 million for Cominco Resources International (TSE) in 1991.

But after writing off abandoned properties and deducting exploration expenditures, income and resource taxes and other costs, the company’s loss for the year was $4.96 million, compared with a loss of $30.69 million in 1990.

The largest contributor to this improved performance was the high-grade Maria copper mine in Mexico which achieved an operating profit of $5.36 million during the full year, including $1.34 million in the fourth quarter. Mine production during the 1991 fourth quarter was 35,000 tonnes grading 13.8% copper, and an additional 6,700 tonnes of lower-grade ore containing 5.3% copper was stockpiled. The concentrator that began operating late last year is expected to reach planned production levels shortly. Although Cominco Resources was originally focused primarily on gold, the globe-trotting company’s current project portfolio reflects considerable exposure to base metals, particularly copper.

Besides the 49% owned Maria project, Cominco Resources is involved in the Quebrada Blanca copper project in Chile. A go-ahead for production was made late last year, and construction is expected to be complete in about 2.5 years.

The US$300-million project is targeted to produce 75,000 tonnes of low-cost, high-purity cathode copper annually using a solvent extraction-electrowinning (SX-EW) process.

Late last year, the company and Teck (TSE) reached an agreement whereby Teck will acquire a 32.5% interest and provide 50% of project financing. Cominco Resources will retain a 10% equity interest in Quebrada Blanca as well as a cash payment of $10 million.

Elsewhere in the world, Cominco Resources’ exploration team has identified a significant copper deposit in Turkey where preliminary reserves are now estimated at six million tonnes grading 3% copper. Within the near-surface deposit is a secondarily enriched zone estimated to contain preliminary reserves of one million tonnes grading 9% copper.

Cominco Resources and partner Cominco (TSE) are constructing new facilities to handle up to one million tonnes per year of imported, high-grade lateritic ore to be processed at their Glenbrook nickel smelter in Oregon. Despite low nickel prices, this operation achieved an operating profit of $700,000 for Cominco Resources last year.

The 76.4% owned Buckhorn mine in Nevada achieved an operating profit of $718,000, and leaching and gold recoveries will continue this year. Cominco Resources is also exploring base metals and gold properties in the U.S., Mexico, Honduras, Bolivia, Chile, Ireland and Turkey. The company expects to spend about $5 million on exploration this year, with a further $8 million to be provided by joint venture partners.