Exploration drilling between the 3800 and 5000 levels of the the Copper Rand mine in Chibougamau, Que., could lead to a substantial increase in reserves.
MSV Resources (ME) recently drilled nine holes to test the possible extension of the mineralized zones over a lateral length of 1,200 ft. All the holes cut gold-copper mineralization, and 48 intersections were reported, the average value being 0.138 oz. gold per ton and 1.49% copper over 11.2 ft. Among the best intersections were: 0.522 oz. gold and 2.65% copper over 13.7 ft.; 0.206 oz. gold and 2.93% copper over 27 ft.; and 0.355 oz. gold and 1.46% copper over 37 ft.
MSV believes a resource of more than 4 million tons containing 550,000 oz. gold and close to 60,000 tons of copper lies 4,000-5,000 ft. below surface. More work will be carried out to upgrade this resource.
During the third quarter of 1995, MSV processed a total of 125,453 tons of ore averaging 0.114 oz. and 1.5% copper to yield 13,194 oz. gold and more than 1,850 tons of copper from its Copper Rand and Portage mines combined.
An additional 22,127 tons averaging 0.324 oz. gold were trucked from the Eastmain mine and processed to yield 6,468 oz. gold.
Operating results at Eastmain have been less profitable than expected, and MSV is contemplating a temporary suspension of operations.
Nevertheless, MSV managed to post third-quarter earnings of $421,905 (or 1 cents per share) on revenue of $13.4 million, compared with $1.1 million (or 4 cents per share) on $12.3 million for the same period in 1994.
For the first nine months of 1995, MSV earned $2.4 million (or 8 cents per share) on revenue of $41.8 million, compared with $2.6 million (or 10 cents per share) on $36.3 million a year ago.
These lower earnings are attributed to increases in non-cash expenses, depreciation expenses and deferred taxes.
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