The combination of low metal prices and high costs at the Huckleberry copper-molybdenum mine caused
The company lost $2 million (or 3 cents per share) on revenue of $25.2 million in the 3-month period ended June 30, compared with a profit of $1.2 million (2 cents per share) on revenue of $30.3 million in the corresponding quarter of 1998, when metal prices were higher. Contributing to the loss was a 17% increase in capital spending, primarily on construction of a tailings dam at Huckleberry.
The mine, situated in central British Columbia, produced 21 million lbs. copper in the recent quarter, down 10% from a year ago. However, improved molybdenum recoveries boosted production of that metal by 115%, to 262,350 lbs.
A recently negotiated financial package for Huckleberry has reduced Imperial’s ownership to 50% from 60%.
Imperial also holds a 52.5% interest in the Mount Polley copper-gold mine, also in British Columbia, where, between the two second quarters, copper production increased 17% to 8.5 million lbs. However, gold production dropped 20%, to 25,259 oz., as grades fell to 0.57 from 0.86 gram per tonne.
Meanwhile, at the ore-depleted Sterling gold mine in Nevada, Imperial continued its reclamation program on behalf of affiliate
Cathedral can eliminate a $1-million line-of-credit by issuing 1 million shares and giving up its remaining interest in Sterling to Imperial. The option remains open until the end of the year.
Residual mining at Sterling in the second quarter resulted in the production of 1,198 oz. gold.
On the exploration front, Imperial optioned to
Imperial retains the right to buy back 20% of the property by spending a subsequent $2 million. Previous drilling defined a resource of 2.57 million tonnes grading 8.8% zinc and 6.4% lead, plus 0.63 gram gold and 325 grams silver per tonne.
Peruvian will test geophysical targets with a 2,000-metre drill program.
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