U.S. Gold adds up fifth year of profits

The company said the decrease was attributable to lower gold production at its Tonkin Springs mine in Nevada where operations are temporarily suspended during an expansion phase.

Fourth quarter earnings were $566,257 or 1 cents a share on revenues of $4.09 million, compared to 1987 fourth quarter earnings of $870,060 or 2 cents per share on revenues of $2.95 million.

With producing mines in Nevada and properties in other western states, U.S. Gold has spent much of the past year concentrating on expanding gold production with the objective to reach the 100,000 oz level in 1990.

“Our new White Pine mine was developed in less than five months and began production in mid- October 1988,” noted William Reid, president, adding that the Nevada open pit mine is designed to produce 24,000 oz in 1989.

“Tonkin Springs, where we are building the first commercial bioleaching operation for gold in the U.S., is expected to contribute 50,000 oz of gold annually with expansion completion anticipated for late summer of this year.”

The company also formed a joint venture last year with Amax Gold to develop the advanced Hayden Hill gold project in California.

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