Although still experiencing cash losses, the Premier project operated by Westmin Resources (TSE) appears to be making progress toward profitability. The open pit gold-silver mine, north of Stewart, B.C., is owned 50.1% by Westmin, 40% by Pioneer Metals (TSE) and 9.9% by Canacord Resources (VSE).
Tonnage mined and milled has increased from just under 140,000 tonnes per quarter in the fourth quarter of 1989 and first quarter of 1990, to almost 200,000 tonnes in the second quarter, 1990.
Head grades have held up with the increase, averaging 2.6 grams gold and 53.5 grams silver per tonne during the last quarter. This compares with grades of about 2.5 grams gold and 30-60 grams silver in the previous two quarters.
The losses appear to be tied primarily to the mining operation, rather than the mill, according to the company.
Earlier this year Westmin instituted a plan to optimize the operation. As part of the plan, a contractor was brought in for a major waste stripping program at the Premier pit.
With the stripping program now completed, the company notes mining costs should drop as the more cost-effective Westmin crews take over.
Be the first to comment on "Westmin progressing at the Premier project"