Copper prices boost Gibraltar earnings

Strong copper prices helped Gibraltar Mines (TSE) earn almost $3 million on revenues of $71.1 million for the first nine months of 1995.

The company milled 11.8 million tons grading 0.27% copper at its McLeese Lake open-pit mine in British Columbia.

Production over the period amounted to 46.9 million lb. of copper in concentrate plus a further 4 million lb. of cathode copper from leaching.

Net of its hedging operations, Gibraltar realized an average of $1.38 per lb. (Canadian) for its copper sales, compared with its average cash cost of production of US86 cents per lb.

A feasibility study on the Lomas Bayas oxide copper project in northern Chile is expected to be completed by the end of the year. Minable reserves are estimated at 312.7 million tons grading 0.364% copper.

Based on preliminary estimates, a US$156.5-million leaching operation at Lomas Bayas would produce in the order of 100 million lb. of copper per year at a cash production cost of roughly US52 cents per lb.