Wheaton River repays funds for Golden Bear construction

With the 1998 mining program operating over budget and ahead of schedule, Wheaton River Minerals (WRM-T) has repaid funds borrowed last year to finance construction of the Golden Bear heap-leach mine in northwestern British Columbia.

In late 1997 and early 1998, the Toronto-based company repurchased most of its forward gold sales contracts. These transactions, together with the improved operating performance, allowed Wheaton River to repay the bank debt ahead of schedule. The company is now debt-free, with working capital of $4 million.

Wheaton River has mined and stacked 260,000 tonnes so far this year, some 20% above budget, plus an additional 150,000 tonnes for the second heap-leach pad.

The grade of the stacked ore was 4.1 grams gold per tonne, 17% richer than forecast. Recoveries are expected to average 90%, compared with 87% forecast in the feasibility study.

As a result of these improvements, Wheaton River has revised its 1998 production upward to 32,000 oz. from the 25,000 oz. originally budgeted. Cash costs are expected to be US$221 per oz.

More than 15,000 oz. have already been shipped from the site.

Exploration at the mine site is continuing, with a surface program aimed at testing the extension of the Grizzy deposit, which hosts an inferred resource of 152,900 tonnes grading 20.5 grams gold per tonne (or 100,000 oz.). Mining of this high-grade zone is expected to extend the mine life.

Wheaton River is also active in Costa Rica, where it is conducting a bankable feasibility study of the Bellavista open-pit gold project. Drilling there is attempting to expand minable reserves last reported to be 9.5 million tonnes grading 1.66 grams gold, equivalent to 512,000 oz.

Once drill results are in hand, the company hopes to add another 225,000 oz. to the project.