TVX seeks even split from North, South American output

Celebrating its first annual meeting, TVX Gold (TSE) reported 1990 gold production of 228,200 oz. at a cash cost of US$228 per oz.

According to Martin Robinson, president and chief executive officer, this will increase to 300,000 oz. in 1991 and 400,000 oz. in 1992.

Of the 1990 total, 32% originated in North America, 20% from Chile and 48% from Brazil. In 1991, the Chilean contribution is expected to increase to 40% with North America remaining at 30%.

“Our objective is to try and achieve an equal split in production between North and South America,” said Robinson.

Of particular note to shareholders, Robinson stated that cash generated by the corporation will be used primarily to expand ore reserves, increase mine output and pay down debt. The dividend of five cents per share paid in the previous two years by a predecessor company was omitted.

La Coipa is the company’s production unit in Chile, TVX and Placer Dome (TSE) each owning a 50% interest. Placer Dome is the operator.

This will be the largest gold mine in South America (and a substantial silver producer) and the 16,500-ton-per-day plant is expected to be completed at a cost of US$250 million by the end of June, 1991. Production to date has been derived from a 1,100-ton-per-day test mill.

The Wilanour Partnership feasibility study at Red Lake, Ont., is expected to be available by the end of this month. TVX has a 50% interest in the partnership and managed the project.

TVX’s gold production is its share of 524,800 oz. produced from six joint venture mines.

Inco is the majority shareholder of TVX owning 62% of the outstanding shares.