Inco Gold wants production growth

Established in 1987 as an unincorporated business unit, the company expects to have an annual gold production totalling 115,000 oz by 1991 from its interests in three different mines. Its longer term objective is to produce 400,000 oz of gold annually by the mid-1990s.

Last year, Inco Gold spent some $45 million on exploration, and made capital investments of another $37 million on projects at or near start-up.

With more than 80 prospects and ventures in Canada, the United States, Brazil, Indonesia and elsewhere, Inco Gold currently has a significant stake in the global search for the noblest of metals.

The company says its Casa Berardi property, which is a 60/40 joint venture with Golden Knight Resources (TSE), should eventually host at least three mines and yield 120,000 oz of gold per year.

In Goias state in central Brazil, Inco Gold is in partnership with Brazilian interests at the Crixas gold project, where mining operations are expected to start this year. The project is reported to be the third- largest gold mining complex in Brazil. Estimated annual production at Crixas will be 120,000 oz of gold.

In Montana in the U.S., Inco Gold’s Mineral Hill mine will be brought on stream this year as well. It’s a 50/50 joint venture with Homestake Mining Co. (NYSE).

At Casa Berardi and Mineral Hill, Inco is the operator, while at Crixas the operator will be one of the domestic partners. All three mining complexes will be underground operations with access to the ore via ramps rather than shafts. Each complex has its own milling and refining facilities.

Walter Curlook, president of Inco Gold, has indicated that at some point in the future the unit will go public. However, he doesn’t see this happening within the next 12 months. Such a move would be undertaken when Inco Gold has established itself as a profitable and efficient gold producer with a number of high quality and well-advanced projects, he said.

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