Golden Bear losses mount

Depressed gold prices and high operating costs at the Golden Bear mine are translating into further losses for North American Metals (VSE).

The company reported a net loss of $963,000 for its second quarter ended June 30. The net loss for the first six months of the year totaled $2.7 million.

The Golden Bear mine in northwestern British Columbia is jointly owned by North American Metals and Chevron Resources.

Due to the continuing losses, North American stated that it did not expect to recover any of its investment in the property, plant and equipment at the mine. As a result, the company took a writedown of $15.1-million during the quarter.

North American Metals is 73.3% owned by Homestake Mining (NYSE) which is also its largest creditor. North American Metals now owes Homestake more than $40 million.