Malartic OKs gold production from Orion mine

A production decision has been made for Malartic Hygrade Gold Mines’ wholly-owned No 8 gold zone, to be called the Orion mine, on the company’s property near Malartic, Que.

Mining is expected to start in the first quarter of 1988 at a rate of 200 tons per operating day rising to 300 tons by 1989. Estimated first year production should be 14,000 oz at a cash operating cost of $245(US) per oz.

Malartic also reports net income off $1,691,724 or 46 cents per share on revenue of $5,486,790 for the first nine months of 1987 compared to net income of $1,447,694 or 41 cents per share on revenue of $5,360,000 during the same period a year earlier. An extraordinary tax item brought net income for the current period to $3,322,140 or 91 cents per share.

The company has also declared its thirteenth dividend of 10 cents per share, payable Feb 15 to shareholders of record Jan 15, 1988. Simon Strauss is a consultant on mineral economics. This article was excerpted from his Sept 14 remarks to the American Mining Congress’s 1987 convention held in San Francisco as published in the AMC’s newsletter Washington Concentrates.