Terra and White Lightning exploring in Kootenays

Terra Mines has reported a net loss of $79,000 for the 1987 second quarter compared with a loss of $109,000 during the same period last year.

The company also reported a net loss of $120,000 on revenues of $5.04 million for the 6-month period ending June 30. That compares with a loss of $164,000 at June 30, 1986, when revenues were $198,000.

The company recently entered into an option agreement with Goldrich Resources enabling Terra to earn a 51% interest in properties located in the West Kootenay area of British Columbia.

Under the agreement which includes the Goldbelt mine in the Sheep Creek Mining Camp, vse- listed Lightning Minerals can participate as an equal partner with Terra in completing the exploration program.

Upon earning the 51% interest (pursuant to the option agreement), both companies will proceed under the terms of the joint venture agreement which makes Terra the operator.

Phase I of a 2-phase program will cost $500,000 and must be completed by Dec 31. Depending on the results of phase I which focuses on 6,600 ft of land between the Goldbelt and The Reno mine, a $500,000 phase II program is scheduled to be completed by Dec 31, 1988.

Since results of an 8,000-ft diamond drill program started in late July are not yet available, proven reserves on the property currently stand at 24,000 tons grading 0.40 oz gold per ton.

The company says production at its Las Minitas project in Mexico could start as early as mid-1988. Terra says much will depend on results from a 5,000-ton field test pad which is scheduled to be in operation by October.

According to the company, mineralization in the Zobia North zone occurs over a 600-m by 18-m area and bulk sample results, so far, indicate average grades of 2.3 g.

Laboratory tests of recovery from leach processing indicate recoveries 60% to 70% of contained gold. Tests are continuing to determine the effects of crushing to varying sizes.