Milner, Madeleine boosting production at Honduran mine

Installations are well advanced towards increasing production to 500 tons per day by the end of the year at its Honduran gold mine, Milner Consolidated Silver Mines (ASE) reports.

Operator of the mine, an open pit, heap leach project which is currently producing at a daily rate of 250 tons, is Compania Minerales de Copan S.A. de C.V.

Milner and Madeleine Mines (TSE) each have a 25.5% interest in the Honduran company, and each has an option to increase that interest to 45.49%.

Reserves at the project stand at 1.3 million tons with a cut grade of 0.1 oz gold per ton. Milner reports the reserves are contained within a larger mineralized area of lower grade material which would potentially be profitable at a large-scale production rate.

Milner reports the Honduran company recorded a loss of about $74,000(C) for 1987 and had a deficit of about $1.3 million as of the end of 1987.

The company has silver properties in the Gowganda area of northern Ontario which are worked by Agnico-Eagle Mines (TSE) under contract to Milner, which receives a 5% net smelter return on mine production.

On the exploration side, Milner reports it has property interests in the Pickle Lake gold area of northern Ontario and in Quebec.

A net income of $55,038 (1 cents per share) was recorded by Milner during 1987, compared to a loss of $29,417 (1 cents per share) for the previous year.