Higher production costs at its 30% owned Kettle River project in Washington state helped push Crown Resources (TSE) into the red for the year ended Dec. 31, 1991.
The company reported a loss of US$1.09 million on revenues of US$15.13 million in 1991, compared to net income of US$1.16 million in 1990 on US$14.57 million in revenue.
The results for each year included US$5-million option payments from Battle Mountain Gold (NYSE) for the Crown Jewel property.
Crown noted that its share of gold production from the Kettle River mine totaled 27,082 oz., up from 24,993 oz. in 1990. A drop in average grade pushed cash costs up to US$279 per oz. from an average of US$240 per oz. in 1990, although an increase in mill throughput helped boost production. Crown expects the mine, owned 70% by Echo Bay Mines (TSE), to produce about 25,500 oz. for its account this year at an average cash cost of US$295 per oz. The company noted that cash production costs should decrease in 1993 as the joint venture begins mining in the higher-grade Lamefoot deposit. After completing a US$14.3 million convertible debenture issue in 1991, Crown has about US$13.8 million in working capital.
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