Seasonal operations at the 50% owned Stibnite mine have historically boosted the company’s earnings in the third and fourth quarters. Stibnite is expected to produce in excess of 30,000 oz gold for 1989, half of which is attributable to Pioneer.
In an effort to regain financial strength, Pioneer is seeking joint venture partners for its 100% owned Puffy Lake gold mine in Manitoba and the wholly owned Bonito gold- silver project in New Mexico. The company noted that it is receiving a good response from the North American mining community.
Pioneer estimates that its plans to reduce staff and office space will lower overhead by $550,000 in 1990.
Art McQuade, vice-president of finance, indicated that Pioneer will meet all its interest payment obligations for 1989. In addition, he said the 7,680-oz payment for the first instalment of the 52,000-oz gold loan due Dec 29 will be met.
The company remains active in exploration with three porphyry type copper-gold projects in British Columbia.
These include the Windy Project south of Mt. Milligan, funded through 51% owned Big Bar Gold (VSE) which has the right to earn a 49% interest from Placer Dome (TSE); the Galore Creek prospect, a projected extension of the central gold zone of the Stikine copper deposit; and finally an intrusive discovery adjacent to Cominco Ltd.’s (TSE) Fish Lake deposit in the Taseko area. Total expenditures for the three projects are expected to approach $500,000 for the 1989 season.
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