Frame suffers riding mishap as Mt. Hundere plan awaited

Injuries suffered by Curragh Resources (TSE) Chairman Clifford Frame in a riding accident at his farm in Uxbridge, Ont., couldn’t have come at a worse time for Curragh and its joint venture partner Hillsborough Resources (TSE). The two companies are awaiting closure of a $63-million non- recourse financing package designed to fund construction of the Mt. Hundere lead-zinc project in the southeast Yukon.

While executives at Hillsborough’s recent annual meeting in Toronto weren’t expecting the financing to be delayed by Frame’s absence, the riding incident was a talking point after the meeting.

According to Hillsborough President George Vooro, Frame crushed his knee after the horse he was riding reared up and he attempted to jump clear of it. “Apparently his foot got caught in the stirrup and he took quite a tumble,” said Vooro who was unable to visit the Curragh chairman because he was being kept under sedation at Toronto Western Hospital. Frame is a director of Hillsborough.

Meanwhile, as Curragh is taking care of all of the negotiations necessary to secure the Mt. Hundere financing, Vooro said he is waiting for an announcement to be made.

Acquired last year from Canamax Resources (TSE) for $10 million, Mt. Hundere is expected to produce 100,000 tons of lead-zinc concentrates annually by 1992. The project is held 80% by Curragh while Hillsborough retains a 20% interest.

So far, the joint venture has established proven, probable and possible reserves of 5.6 million tons averaging 4.73% lead, 12.68% zinc and 1.9 oz. silver per ton, enough to support a mining operation for 11 years.

Studies indicate average operating costs of $40.69 per ton of ore milled or 13 cents per lb. contained lead-zinc.

As Curragh’s 580,000-ton-per- year Faro lead-zinc mine is scheduled to be mined out in 1993, the Mt. Hundere project is vitally important to both companies. Curragh recently went public in an effort to raise the financing. Hillsborough, which reported $31 million in revenues from its mine contracting division, is attempting to become a producing mining company.

“At today’s pricing for lead, zinc and silver (US41 cents per lb., US75 cents per lb. and US$5 per oz. respectively), Mt. Hundere is capable of flowing 40-50 cents per share to Hillsborough, said Vooro.

In 1989, Hillsborough had net income of $1.1 million or 23 cents per share, compared with $1.4 million or 30 cents per share for the year ended Dec. 31, 1988. On March 31, it had $1.5 million in cash and $174,000 in long-term debt.