U.S. ROUNDUP — Wharf assesses mine acquisition

Following completion of a detailed assessment of the Golden Reward mine near Lead, S.D., Wharf Resources (TSE) says it has identified the mine’s most pressing needs:

— capital — the mine does not generate sufficient cash flow to service its obligations;

— significant expenditures are needed for drilling to extend reserves and improve planning capabilities;

— permitting — a backlog of permitting issues needs to be completed; — flexibility — the present heap-leach pad requires modification. Wharf acquired a 60% interest in the mine on Oct. 8 and assumed management of the project, which is adjacent to Wharf’s mining operations. Production from Golden Reward for 1992 is forecast at 55,000 oz. at an estimated cash cost of US$335 per oz. The preliminary forecast for 1993 is 62,000 oz. at an estimated cost of US$300.