Ennex’s 1987 revenues up despite mine interruption

Despite a work interruption at the Little Bald Mountain mine in Nevada, higher gold prices enabled Ireland-based Ennex International to report a slight increase over 1986 revenues.

Ennex holds a 22% interest in the Bald Mountain project through its participation in the WX Syndicate with Westfield Minerals (TSE) and Whim Creek Consolidated (TSE).

After a rockfall forced a temporary stoppage of heap leach operations, the mine produced 3,560 oz gold in 1987. As a result, revenues to Ennex amounted to $372,000 compared with $360,000 in 1986.

By treating at least 90,000 tons of ore during 1988, a record 8,000 oz gold is expected to be produced from the Little Bald Mountain project, Ennex says.

For the year ended Dec 31, Ennex recorded an after-tax profit of just over $1 million ($1.52 per share), up from a loss of $15.1 million or ($28.2 9 per share) in the same period last year.

The company’s year-end cash position was $14.8 million compared with $5.56 million on Dec 31, 1986.

While production from the Tower Hill mine in Australia will boost Ennex’s gold output to about 6,500 oz in 1988, the company is attempting to bring a couple of European gold projects into production. Cononish project

Located in Northern Ireland and Scotland the wholly-owned Curraghinalt and Cononish projects will eat up much of a $6 million 1988 exploration budget, Ennex says.

A third-quarter production decision is expected at the Curraghinalt gold project in Northern Ireland’s Sperrin Mountains where a Dosco Roadheader is currently boring an access adit into the rock face.

For security reasons, Ennex has elected to use a roadheader instead of explosives to access the Curraghinalt mineralization. Although more suited to a coal mining scenario, the equipment is proving more efficient than expected.

Advancing at a rate of 4.1 m per 12-hour shift, the roadheader will excavate 330 m of adit and 700 m of lateral drifting along the main vein in a bid to test the grade and continuity of gold bearing structures.

Curraghinalt reserves are estimated to be approximately one million tons grading 0.30 oz gold per ton in five quartz veins.

Assuming that Ennex can successfully gain planning permission from local authorities, production should begin at a rate of 250 tons per day before increasing to 500 tons per day to produce an estimated 30,000 oz gold annually. Probable reserves

After outlining 525,000 tons grading 0.22 oz gold and 1.67 oz silver at the Cononish project in Scotland, a 1988 program will attempt to place the reserves in the proven/probable category.

The inital development phase of the project will involve accessing the gold-silver bearing quartz vein by underground tunnelling along the vein to test its continuity vertically and laterally, Ennex says.

The company will drive a 2.4×2.4 m tunnel for at least 1,000 m and 400 m of raising and crosscutting is also expected to be carried out. Initial testwork on drill core samples has indicated that a 94% gold recovery rate is possible.

Meanwhile, the WX Syndicate (Ennex 50%) holds over 50 claim groups covering 100,000 acres in the U.S. That includes the Zeke property in Humbolt County, Nev. where the Syndicate is earning a 70% interest.

Approximately two million tons grading 0.056 oz gold was outlined recently.

Ennex is 15%-owned by Northgate Exploration (TSE) of Toronto.