Letters to the Editor Figures indicate profit at Magino

The paragraph on page seven (under the heading “Toronto Stock Exchange”) stated that McNellen’s Magino Mine “is a money loser at current gold prices.”

On page three, under the heading “Magino output low but increasing” you state that third- quarter production was 7,166 oz, mill throughput 426 tons per day, and operating costs $65-70 per ton.

This shows that for the third quarter this year, gold output averaged 80 oz per day, at an assumed operating cost of $70 per ton, daily operating costs were 426 x $70 or $29,820. On Oct 19 the Bank of Nova Scotia quoted gold at $428(C) per oz. At 80 oz per day, gross daily operating revenue would be 80 x $428 or $34,240.

Thus net operating revenue per day would be positive at $34,240 less $29,820 which equals $4,420. This figure does not include revenue from silver.

At a net operating revenue of $4,420 per day, projected annual revenue for the Magino is $1,547,000 before taxes. Hardly a money losing operation. John Morgan, Toronto, Ont.

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