Over-all it was a very good year for Pioneer Metals which reported net income for 1987 of approximately $4.1 million or 31 cents per share. This compares to earnings of $2.2 million or 27c a year earlier.
The company’s 50%-owned Stibnite gold mine in Idaho yielded a total of 36,500 oz gold and 22,400 oz silver last year. Pioneer reached an agreement with Hecla Mining to process ore from its nearby property at an annual rate of 400,000 tons beginning in 1988. Project completion is scheduled for 1991 and the ore will be processed in conjunction with the leaching of Pioneer’s ore.
Construction work at the Puffy Lake project in northern Manitoba is on schedule and should be completed this month. Milling started Dec 4 and the first dore bar was poured Dec 15. Mill throughput should increase to the design rate of 1,000 tons in the first quarter. The 1988 operating season is expected to yield approximately 72,000 oz gold.
Exploration work at Pioneer’s 100%-owned Bonito gold-silver project in New Mexico has blocked out reserves (drill-indicated) of 3.6 million tons grading 0.053 oz gold equivalent.
Final feasibility studies indicate an annual output of approximately 77,000 oz gold and 890,000 oz silver over the first four years of operation at Pioneer’s Premier gold project near Stewart, B.C. Pioneer has a 41.1% interest in Silbak Premier Mines which has a 40% stake in the project. Pioneer has offered to purchase Canacord Resources’ 9.9% interest for cash and shares valued at $7.6 million.
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