Coniagas Group releases 1987 first half results

The companies which form the Toronto-based Coniagas Group have just released results for the six months ended June 30, 1987.

Quebec Sturgeon River Mines reported a loss for the period of $119,184 or 1 cents per share, down from $571,277 or 6 cents per share in 1986. Revenues from production were down considerably to $282,274 for the first half of 1987 from $4.3 million in the same period a year ago.

As expected St Andrew Goldfields is proceeding towards a late 1988 production target at its Stock Twp. mine near Timmins, Ont.

According to the company, based on known reserves of 1.5 million tons averaging 0.183 oz per ton, it is contemplating an initial mill rate of 500 tpd (rising eventually to 1,000 tpd) or 175,000 tons annually.

Reserves of 800,000 tons grading 0.23 oz at the new high grade North 2 Zone are included in estimates of an annual production rate at 30,000 oz at an operating cost of approximately $325 ($250US) per oz.

However, since that doesn’t include possible reserves at three new zones including: East Zone located about 3,000 ft from underground workings at Stock Twp. shaft; the Shoot Zone with its formerly estimated reserves of one million tons averaging 0.126 oz gold, including a higher grade section of 400,000 tons grading 0.158 oz; the Porphry Zone, site of a $4.5 million shaft sinking and underground program on two levels including 60,000 ft of surface diamond drilling, the potential exists for much greater production. Porphyry Deposits

Acquired from Hollinger Inc. in 1986 in concert with Esso Minerals Canada and Quebec Sturgeon River Mines, The Shoot and Porphyry deposits are about six or seven miles east of the Stock Twp. minesite.

With $9 million in hand, St Andrew expects to fund preproduction and mill construction independently. During the first six months of 1987, reported income of $322,034, down slightly from $381,698 for the same period last year. Earnings for the six month period were $81,660 or 7 cents per share. That compares with $112,773 or 9 cents per share in 1986.

Bachelor Lake Gold Mines, a 51% subsidiary of Quebec Sturgeon reported losses of $3,770,151 or 51 cents per share for the first half of 1987, up from $1,840,495 or 26 cents per share in 1986. Revenues of $282,274 from bullion production were down considerably from $4.3 million during the equivalent period in 1986.

That revenue picture is attributable to ongoing problems at the company’s Flordin joint venture gold deposit in Desjardin Twp., Que. where production was halted during the period. Indicated reserves now stand at 228,000 tons at an average cut diluted grade of 0.210 oz.

Bachelor Lake says regular milling operations are scheduled for late this month. But since initial mill feed will come from stockpiled development muck, mined from lower levels, which will result in dilution, the company’s financial picture is not expected to improve this year.

After completing the first phase of a 1986/87 development program, Bachelor Lake has increased its interest in the Flordin project to 49% while Sullivan Mines stands at 51%.

The program involved driving a ramp to a vertical depth of 150 ft, and drifting east and west along the mineralized structure. Cross- cutting and raising included some 32,000 ft of surface diamond drilling. Kidd Creek

During the first half of 1987, Anglo Dominion Gold Exploration reported revenues of $1,813,608 from processing 18,501 tons of ore at the Kidd Creek smelter in Timmins, Ont. That compares with $324,339 in 1986. Average grade of the ore was 0.173 oz and 87% payable gold content was 2,781.8 oz.

The company stockpiled 61,000 tons of ore grading 0.178 oz on surface for shipment to the Kidd Creek smelter.

Exploration continues at Anglo Dominion’s Little River joint venture gold project in Newfoundland’s Baie D’Espoir region and the company says a major diamond drilling program will begin in October.

Net losses of $433,317 or 16 cents per share for the six months compares with $257,515 or 10 cents per share during the same period last year.