Malartic cuts good holes at Orion mine

Toronto-based Malartic Hygrade Gold Mines (VSE) says better than expected drill results have been encountered during recent delineation drilling on its 60% owned Orion property near Val d’Or, Que. The underground drilling program, being conducted in conjunction with American Barrick Resources (TSE), began in early October and is expected to continue for several more months. Initial results from the program are as follows: Interval Length Gold Hole (ft.) (ft.) (oz./ton) 35 105-116 11 0.70 38 224-238 14 0.26 39 169-190 21 0.20 43 192-206 14 0.41 46 340-351 11 0.34 47 181-196 15 0.41

So far, drilling has focused exclusively on the area above the Camflo mine’s 1,500-ft. drift level. The objective of the work is to establish proven ore reserves in the area immediately accessible from the existing workings of the mine. “This would permit production to begin as early as the first half of 1991,” says Malartic President Marc Henderson.

“The next phase of drilling, which is just beginning, is intended to expand the dimensions of the deposit, which is open and untested both along strike and at depth,” he says.

For the three months ended Sept. 30, Malartic reports a net loss of $1.27 million (29 cents per share) on revenue of $670,000, compared with net income of $200,000 (4 cents per share) on revenue of $2.5 million in the third quarter of 1989.

The company says a permitting delay in Arizona caused commercial production at its Congress mine to begin in Oct. 1, rather than on Aug. 1, as planned. Operations at the mine are proceeding on track and the mine achieved profitability in October, its first full month of commercial production.

Because of the sharp deterioration in financial markets during the third quarter, the company decided to write down its investment portfolio by $1.25 million. As a result of the losses it has incurred so far this year, the company does not expect to show a profit for the full year. However, Malartic says its fourth quarter is expected to be profitable. Malartic Hygrade Gold Mines (VSE) 3 months ended Sept. 30 1990 1989 Revenue $670 $2,509 Net earnings (loss) (1,268) 200

per share (0.29) 0.04 9 months ended Sept. 30 Revenue $2,796 $7,084 Net earnings (loss) (1,957) 491

per share (0.45) 0.1204