Dickenson’s first quarter encouraging

Higher gold production and lower costs at its Arthur White mine, near Red Lake, Ont., have enabled Dickenson Mines (TSE) to post higher revenues and earnings during the first quarter.

Earnings for the three months ended March 31 were $1.6 million (9 cents per share) on revenues of $15.3 million compared with earnings of $265,000 (2 cents per share) on revenues of $13.4 million a year ago.

Gold production at the Red Lake mine was 21,397 oz., up 26% from 16,917 oz. during the same period last year. Cash operating costs improved to US$261 from US$381 in 1992. A higher grade of ore mined and an increase in recovery rate contributed to the improvements.

Planned gold production for 1993 is 78,000 oz. at a cash operating cost of US$281.

At its annual meeting in Toronto, Dickenson announced it was reviewing plans for an $8-million bioleaching plant and a $14-million conventional mine expansion.

The goal of the expansion is to further increase production and improve the gold recovery to 90% from the current 80%. The expansion would increase gold output at the mine to 120,000 oz. by 1996, the company said. Gold production in 1993 is estimated to be 123,000 oz., a portion of which is attributable to the Wharf and Golden Reward mines in South Dakota.