Citing low gold prices and a decrease in gold production and grade at its Kerr mine near Virginiatown, Ont., Deak Resources reported a net loss of nearly $8 million in 1992. That compares to a profit of just over $315,000 a year ago.
Last year, Kerr produced 28,380 oz. gold from 354,104 tons and processed 164,825 tons for third parties. In 1991, output was 35,504 oz. gold from 289,779 tons and 135,502 tons were processed for third parties. To lessen the impact of grade fluctuations at Kerr, the company planned to develop several new areas last year. However, development was delayed by a lack of funding. In February, the continued inability to raise money forced Deak to close temporarily its underground operations. The Kerr mill will continue to operate on a custom basis.
Deak also reports that regulatory delays in environmental certification of the expanded and refurbished Kerr mill contributed to losses in 1992.
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