Corona declares write-down for Nickel Plate project

Last year the company adjusted the mine’s reserves from 9.4 million tons grading 0.133 oz gold per ton to 9.1 million tons grading 0.088 oz. Corona says the difference in numbers stems from an application of stricter parameters based on the experience gained from the project since operations were started up in April, 1987.

The property now has a carrying value of $51 million, representing, the company says, the estimated depreciated cost of the capital assets built under the original feasibility study.

Corona recorded consolidated earnings of $26.5 million for the 15-month period ending Dec 31, before unusual and extraordinary items (and not including contributions from its interest in the Williams gold mine at Hemlo which is the subject of a legal dispute with LAC Minerals).

After unusual and extraordinary items (including the write-down), Corona recorded a loss for the same 15-month period of $82 million.

(Corona, which was created through the amalgamation of five companies in July last year, has changed its fiscal year to correspond to the calendar year; previously, the company’s year-end was Sept 30).

Total gold production by Corona (excluding Williams production) for the 12-month period Jan 1-Dec 31, 1988, was 317,405 oz.

Exploration programs at Nickel Plate and on neighboring properties in which Corona and associated companies have interests have been accelerated, the company reports.

Underground reserves were tested from two drifts and to date about 40,000 tons grading 0.22 oz have been mined. At the Canty deposit, a previously indicated geological reserve of 650,000 tons grading 0.154 oz has been re-drilled; an economic evaluation of an open pit reserve is planned.

Corona has interests in 10 operating precious metal mines in North America.

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