Net income of $900,000 was recorded by Renabie Gold Mines during fiscal 1987 (for the 12 months ending Sept 30,), compared with a profit of $1.5 million in 1986.
An increase in depreciation and amortization resulting from the capitalization of expansion costs, and higher interest costs, contributed to a lower income last year.
Renabie, which is owned jointly by the operator, Royex Gold Mining (TSE) and American Barrick Resources (TSE), produced a record 38,180 oz last year from 221,000 tons of ore milled, up from 34,943 oz from 179,000 tons in 1986, at its northern Ontario mine located near Missanabie.
Renabie completed a $23-million expansion program in December, 1986, which included a change in mining method from longhole stoping to trackless sub-level caving, the sinking of an internal shaft from 3,105 ft (vertical) to 4,407 ft, and a boost in mill capacity from 500 tons to 700 tons per day.
The company reports all mining is now being carried out below the 3,105-ft level with ore and waste hoisted up the winze.
Future annual gold production is projected to be about 38,000 oz, at a direct operating cost of $270(US) per oz.
The deposit is open at depth and Renabie reports proven and probable reserves, as of Oct 31, 1987, and to the 4,280-ft level, of about one million tons averaging 0.25 oz gold per ton undiluted, using a cut- off grade of 0.15 oz.
The company negotiated a 5- year gold loan for 20,000 oz prior to year-end, with the gold sold forward at $483 per oz.
The Renabie mine won the 1987 Levitt Safety Award, which is presented to the mine in the province’s Superior health and safety group showing the most significant improvement compared with the previous two years. The mine also recorded the lowest number of injuries requiring medical aid, and the lowest number of accidents resulting in lost time.
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