Having successfully completed a bulk sample test on its wholly- owned Orion gold project near Val d’Or, Que., Malartic Hygrade Gold Mines (Canada) says it is now proceeding to a final feasibility stage for the project.
In the bulk sample test, three gold bars, totalling 1,542 oz gold were recovered, and sold for more than $900,000, the company reports. A wide range of material was processed in the 12,400-ton sample, including a significant portion of development muck.
No metallurgical problems were encountered, and mill recovery exceeded 94%, Malartic says.
President J. S. Belton says assuming a positive decision is reached on the project, commercial production could begin as early as the fourth quarter of this year, and could make a major contribution to earnings beginning next year.
On the financial side, Malartic reports record quarterly income of $2,354,551 or 65 cents a share for the fiscal second quarter ended June 30, compared to $484,125 or 14 cents a share in 1986.
Contributing to the improved performance, Mr Belton says, was a strong operating performance at the Malartic/Barrick mine, and a mining tax refund from the Quebec government of $1,630,416, equal to 45 cents a share, which has been accounted for as an extraordinary item.
Financial results exclude revenue from the bulk sample which has been credited against the capitalized cost of the Orion project. Revenue for the quarter was $2,020,790, compared to $1,745,581 in 1986.
For the six months ended June 30 this year, net income equalled $2,802,000 or 77 cents a share on revenue of $3,700,000, compared to an after-tax profit of $943,623, or 27 cents a share on revenues of $3,803,000 during the similar period last year.
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