High demand and low inventories have sent copper prices flying and it isn’t just the big producers who are benefiting. The ripples are spreading and one busy trader of late, United Gunn Resources, expects to earn dividends from the rapidly rising world copper prices.
United Gunn holds a 30% interest in Cuisson Lake Mines which owns the Granite Lake property being mined by Gibraltar. Gibraltar holds 40.53% and its parent Placer Dome holds 29.47% of Cuisson Lake Mines.
Gibraltar has been mining the high grade ore from the Cuisson deposit since the last quarter of 1987. One of four Gibraltar pits, it was first mined in the mid-1970s and stage two development coincided with the much higher prices for copper.
The prices were timely for both Gibraltar, which had 9- month earnings in the red for the first time since copper prices fell in 1981, and for Cuisson Lake Mines. Assuming copper prices hold, United Gunn expects to receive dividends from Cuisson Lake during 1988, R. Moxey, the company’s secretary- treasurer says.
Gibraltar recently completed a $100,000 diamond drilling program on the Cuisson claims to test ground surrounding the Granite Lake stage two open pit. The program was mainly in-fill drilling to confirm projections for potential expansion.
The Cuisson property consists of 36 claims adjoining Gibraltar’s mine and has reserves of 6.9 million tons averaging 0.37% copper and 0.009% molybdenum. Gibraltar is currently working to expand its other ore reserves which were last reported at 101 million tons grading 0.32% copper and 0.009% molybdenum.
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