The settlement of an arbitration hearing and the sale of subsidiary NorthWest Gold have enabled Northgate Exploration (TSE) to post its best financial results since 1989.
In 1995, Northgate earned $7.2 million (or 24 cents per share) on revenue of $12 million, compared with $1.4 million (5 cents per share) on $3.7 million in 1994.
Revenue and earnings were enhanced by the production of 6,700 oz. gold and 129,000 oz. silver from the Choquelimpie mine in Chile. After taking silver credits into account, the cash operating cost at the mine was US$184 per oz.
The US$2-million exploration program to test sulphide mineralization at Choquelimpie is continuing. Northgate’s joint venture partner has exercised its option to acquire a half interest in the project by paying the company US$200,000. The partner can increase the interest to 60% by giving Northgate’s subsidiary a 2% net smelter return royalty.
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