Metall’s quarterly report mixed

There was good news and bad news during the third quarter for Metall Mining (TSE).

On the plus side, production of copper cathode from its 87.3%-interest in the Copper Range mine in Michigan increased to 40.2 from 33.4 million lb. in 1992. Cash operating costs stabilized at US78 cents per lb.

At the Winston Lake zinc mine in northwestern Ontario, cash operating costs were US38 cents per lb.

On a gloomy note, however, the collective bargaining agreement with the workforce at Winston Lake expired Nov. 1 and a tentative agreement was later rejected. Discussions are continuing.

A protracted dry spell in Papua New Guinea has caused water levels in the Fly River to drop, forcing the cancellation of all shipments of copper-gold concentrates from the Ok Tedi mine.

The mine is jointly owned by Metall (23.7%), BHP Minerals International (56.3%) and the government of Papua New Guinea (20%). Ok Tedi has declared force majeure, saying further shipments will now be impossible until the river level rises.

Despite the dry weather, production of concentrate is continuing at 600,000 tonnes per year. Production in the quarter was 108 million lb. copper and 107,000 oz. gold. Reserve estimates are 510 million tonnes grading 0.63 grams gold per tonne and 0.69% copper.