Snip mine boon for Prime

The Snip gold mine in northwestern British Columbia turned out 31,750 oz. for Prime Resources Group (VSE) in the first six months of this year, a 20% increase from the same 1992 period.

The company holds a 40% interest in the underground mine, operated and owned 60% by Cominco (TSE).

The increase was attributed to higher-than-expected grades and increased throughput. Cash production costs fell 19% to US$140 per oz. during the period.

Prime announced net income of $3.6 million or 8 cents per share for this year’s first half, compared with a loss of $23.2 million a year earlier. The company also has a 50% direct interest in the Eskay Creek gold project where a feasibility study by parent company Homestake Mining (NYSE) is to be presented in the next quarter.