Faced with slumping metal prices,
The company’s decision was influenced by the fact that blasting was releasing nitrates into the Libby Creek in violation of state water laws. Noranda had planned to drive a 16,000-ft.-long decline to facilitate further infill and exploration from underground. The company got as far as 14,000 ft. before encountering the nitrate problems. The project then got stuck in permitting limbo and work never resumed.
Most of the reclamation work at Montanore was completed in 1995, including the removal of all buildings and related infrastructures, securing the underground opening and revegetating the site.
Originally, a 17,500-ton-per-day underground mine was proposed, with a price tag of US$250 million and employment for 400 people. Noranda sunk more than US$100 million into the project before deciding to pull out.
At the end of 2000, the project’s total indicated resources stood at 112.5 million tonnes averaging 0.77% copper and 73 grams silver per tonne. Inferred resources were pegged at 16.4 million tonnes running 0.82% copper and 67 grams silver.
Royal Gold boosts fiscal performance
Improved gold prices and a large deferred-tax benefit gave
The Denver-based royalty company made US$10.7 million (or US59 per share) on revenue of US$12.3 million in the period, including a US$6.8-million gain on deferred taxes. In the previous fiscal year, the company made US$1.1 million on revenue of US$6 million. Royal’s operating income was significantly higher, at US$5.1 million, compared with US$927,752 the year before.
The tax benefit, which is a non-cash item, will ultimately be a non-cash tax expense, but Royal also has US$19.6 million in tax losses that can be applied against future tax liabilities.
Revenues from its largest royalty interest, the Pipeline mine in Nevada, almost doubled in spite of lower mine production. The mine is owned by Kennecott Explorations, a subsidiary of
Pipeline paid out US$11.6 million in royalties in the 12 months ended June 30, compared with US$5.7 million in the previous 12 months. At the Bald Mountain mine, also in Nevada, production and royalty revenues were both higher.
Royal also started to receive royalties from the Martha mine in Santa Cruz province, Argentina, which
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