With Hees group in control Westfield plans to be busy

Due to a $1.87-million write-down on exploration properties, the Toronto-based affiliate of Northgate Exploration (TSE) recorded a loss of $4.2 million (28 cents per share) last year. That compared to a profit of $2.7 million or 20 cents per share in 1987.

Westfield recently ended its association with Whim Creek Consolidated NL of Australia which is being taken over by Australian gold producer Dominion Mining. As reported (N.M., Feb 27/89) Northgate and Westfield sold their combined 15% stake in Whim Creek for $39 million(A).

As part of a plan to divest itself of offshore assets, Whim Creek also sold its 46% stake in Westfield to Bermuda merchant banker, American Resource for $25.8 million(A). American Resource is controlled by Hees International Bancorp. which in turn is owned by the Montreal-based Bronfman family.

While American Resource hasn’t revealed what its intentions are for Westfield, a rumor suggests that the latter company will eventually wind up in Northgate’s portfolio of assets.

Meanwhile, a priority for this year will be the Choquelimpie gold- silver deposit in Chile where Westfield (35%) is joint venturing with Shell Chile (42%) and Citibank N.A. (23%).

Production in Chile began in July 1988 and by year-end the mine had produced 14,000 oz gold and 115,000 oz silver.

Since first-quarter production has already exceeded 15,000 oz gold and 85,000 oz silver, Westfield is expecting the operation to produce at least 80,000 oz gold this year.

So far, Westfield has invested $14 million in the Choquelimpie heap leach mine where a production decision was based on an oxide reserve of 6.9 million tons grading 0.065 oz gold and 2.52 oz silver per ton.

Westfield also has a stake in the much smaller heap leach operation — the Little Bald Mountain gold mine in Nevada — through its 25% interest in the WX Syndicate. The Syndicate holds a 43% stake in Little Bald Mountain where production is expected to increase this year to 8,000 oz from 5,000 oz last year.

Westfield retains a 3% gross royalty interest in Muscocho Explorations’ (TSE) Magnacon property at Mishibishu Lake, Ont. Scheduled to produce 60,000 oz gold annually, the mine is expected to go into production within the next few weeks.

On the exploration front, Westfield has a 54% stake in the Ontario Gold Venture which is looking closely at some Pickle Lake, Ont., properties. Westfield’s partners in the venture are Northern Dynasty Explorations (VSE) and Newfield Minerals Inc. (VSE).

Results from a 4,800-ft program at the Arseno Lake property included 15 ft of 9.25% zinc and 2 oz silver per ton in hole 88-01. It was drilled to test the down dip extension of mineralization intersected in hole 87-19 (7% zinc and 1.5 oz silver across 26 ft.).

In Great Britain, Westfield’s 35%-owned affiliate Ennex International PLC. has outlined one million tons of grade 0.3 oz gold at the Curraghinalt property where enough underground work has been completed to warrant a feasibility study. The Curraghinalt property is located in the Sperrin Mountains of Northern Ireland.

Also at the feasibility stage is Ennex’s Cononish property in Scotland where an exploration/development adit has advanced 250 m towards the main mineralized zone.

Reserves at Cononish now stand at 925,000 tons grading 0.28 oz gold.

On Dec 31, Westfield’s long-term debt had increased to $13.1 million from $5.5 million at the same time in 1987. The company’s year-end cash position also increased to $1.47 million from $864,277 on Dec 31, 1988.

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