Reserves boosted at Cerro Colorado

Having assessed the latest drilling and delineation results, Rio Algom (TSE) reports an impressive 90% increase in copper-in-ore reserves at its wholly owned Cerro Colorado mine in Chile.

Reserves were increased to 193 million tonnes grading 1.08% copper from 79 million tonnes grading 1.39% copper.

Colin Macaulay, president, says the additional reserves will enable the mine to produce for well over 20 years (at an expanded mining rate) “and provide us with the potential for further production expansions in the future.” On the financial front, the diversified producer reported its best quarterly report in the past five years. Fourth-quarter earnings of $29.9 million are 2.7 times higher than they were in 1993.

Rio Algom reported 1994 earnings of $75.2 million, more than double 1993 earnings of $33.9 million.

This improved performance was attributed to higher production and metals prices.

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