Junior Kit Resources (KIT-T) plunged deeper into the red in 1997.
The Alberta-based company reported a loss of $23.7 million (or 76cents per share) for the twelve months ended Dec. 31. This compares with a loss of $2.2 million (or 18cents per share) in the previous year.
The poorer results are mainly a consequence of the devaluation of the company’s George Lake gold project in the Northwest Territories to $21 million from $42.6 million. The project is Kit’s chief asset, hosting indicated resources of 4.75 million tonnes grading 9.88 grams gold per tonne.
Kit says the writedown was necessary to reflect both a 16% drop in the property’s resource from previous estimates and current predictions for the long-term price of gold.
The company is currently revising its prefeasbility study on George Lake to incorporate results from new metallurgical studies and the latest resource estimate (T.N.M., April 6-12/98).
Be the first to comment on "Kit devalues George Lake"