Gold production up at Malartic Hygrade

With mill construction at its Congress gold mine under way, Malartic Hygrade Gold Mines (VSE) is looking forward to becoming a much larger gold producer. In 1989, output from a number of Malartic’s Val d’Or, Que., operations increased to 20,015 oz. gold from 13,881 oz. in 1988. But at full speed, the Congress mine in Arizona is expected to add about 35,000 oz. annually to the company’s production quota.

Meanwhile, Malartic reported net earnings for the year ended Dec. 31 of $595,226 or 15 cents per share compared with a net loss of $1.2 million or 30 cents per share at the same time last year.

The company’s annual revenues increased in 1989 to $9.9 million from $7.8 million in 1988.

Malartic’s fourth-quarter net income was $104,074 or 3 cents per share compared with a net loss of $1.7 million or 44 cents per share in the equivalent 1988 period. Fourth- quarter revenues climbed to $2.8 million from $2.2 million a year earlier. Results for the fourth quarter of 1988 include a writedown of $1.8 million relating to deferred exploration and development costs.

In December, Malartic acquired an option to purchase the Ellison gold property, east of Val d’Or, from a private company which is being sued by Yorbeau Resources (TSE). In its statement of claim, Yorbeau says it has already earned a majority interest in the Ellison property which hosts possible reserves of 860,000 tons grading 0.2 oz. gold per ton. As part of the deal, Malartic is paying the private company’s legal costs. Malartic Hygrade Gold (VSE) Year ended Dec. 31 1989 1988 Revenue (000s) $9,923 $7,842 Net earnings (loss)

(000s) 595 (1,128 ) Net earnings (loss)

(per share) 0.15 (0.30 )004