Climbing gold sales from the Pinson-Prebble and Dee mines in Nevada in which Lacana Mining has interests, added to a higher gold price, gave the company record earnings for the nine months ended Sept 30.
Lacana reports earnings for the period of $5,811,000, or 49 cents a share, compared to profit of $974,000, or 9 cents a share, in the similar period last year.
Revenues showed a substantial gain, amounting to $26,643,000 for the nine months this year, against $23,308,000 in the 1985 period. Of this, bullion sales this year rang in at $13,280,000, compared with $11,302,000.
The Pinson-Preble mines, (Lacana, 26%), in the latest nine months produced 61,782 oz gold, and the Dee, (Lacana, 29%), 38,343 oz, for a substantially greater output than last year, says Chairman W. H. Gross.
Metal production from the Torres mine in Mexico, (Lacana, 30%), was 37,240 oz gold, and 2,652,000 oz silver. Discussing the oil/gas business side of Lacana’s operations, Mr Gross notes that elimination of the federal government’s petroleum and gas revenue tax (PGRT), and enhancement of the Alberta royalty tax credit resulted in a 9% increase in cash flow compared with the 9-month 1985 period, and earnings from oil and gas for the same period were up by 88%.
On the exploration front, Lacana says it plans more drilling early next year on two new zones located on the Musselwhite property in Ontario’s Snoppy Lake area, where a recently-completed 1986 surface drilling program has outlined more than one million tonnes of gold- bearing iron formation averaging about 0.22 oz gold per tonne.
Across Canada, Lacana says, the company has prospecting and drilling in progress on 10 precious and base metals projects, and in the U.S. three promising gold prospects are being developed.
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