Net income of $1.3 million (9 per share) was reported by Minnova Inc. (TSE) for the first nine months of 1988, compared with $880,000 (6 per share) for the same period last year.
The company attributes the improved results to the commencement of production at the Winston Lake zinc mine in northern Ontario at the first of April and higher base metal prices. Partly offsetting the gains was the higher value of the Canadian dollar, the company says.
Zinc concentrate production from Winston Lake totalled 47,400 tonnes for the six-month period begining April 1, that figure representing about 85% of mine capacity. Gold production from the company’s various projects totalled 62,000 oz during the 9-month period, up slightly from 1987.
Minnova reports its board of directors has approved a $32.2 million capital program to place the Samatosum base and precious metals deposit into production by the fourth quarter of 1989 at a production rate of 450 tonnes per day. Minnova is the operator and its 70% share of the capital cost is $22.5 million; Rea Gold (TSE) has a 30% interest and a 5% net smelter royalty.
The first three years of production will be by open-pit method at Samatosum, located 25 km east of Barriere, B.C. Drill-established reserves with dilution are estimated to be 773,600 tonnes grading 1% copper, 1.4% lead, 2.9% zinc, 831g per tonne silver and 1.5 g per tonne gold.
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