Keystone results continue to shine

Production and profits are up considerably at the Keystone gold mine in northern Manitoba.

The operation, owned equally by Granduc Mining (TSE) and Black Hawk Mining (TSE), yielded 8,197 oz. in the fourth quarter of 1994, an increase of 11% over the third quarter.

The operating profit was $749,000, a 51% jump over the previous quarter. The joint venture recently began modifying the Lynn Mill grinding circuit in an effort to increase throughput by 10% and gold production by 5%. Also, the partners acquired a 55.2% interest in the Farley Lake open-pit deposit by making a final payment of $525,000. They are earning the remaining interest through an option agreement with Mingold Resources. The deposit hosts 1.8 million tons averaging 0.1 oz. gold per ton. The potential to expand these reserves is said to be significant.

Permitting for Farley is under way, and development is to begin this fall. At full production, the mine is expected to average 48,000 oz. per year at an operating cost of US$225 per oz.