Taking advantage of strong zinc prices, which averaged more than 50 cents (US) per lb in 1988, the Polaris mine processed more than one million tonnes of zinc-lead ore. Pine Point’s 45% share of concentrate from the mine totalled 86,300 tonnes of zinc and 17,700 tonnes of lead.
The company bought its interest in the mine from parent Cominco Ltd. last year. The price tag came to $93.7 million and $6.2 million in assumed liabilities.
Due to strong cash flows from the mine, and continued processing of stockpiled ore from the company’s shutdown Pine Point operation, all outstanding bank debt was retired in 1988. Revenues from metal sales totalled $189.7 million and generated a profit of $62 million — the largest in the company’s history.
At Pine Point, N.W.T., milling operations came to an end in April 1988 and the town closed four months later. The only activity at the site remains the loading of rail cars. At year-end, concentrate inventories totalled 336,000 tonnes of zinc and 21,300 tonnes of lead. Sales from these stockpiles are expected to continue into 1991. Zinc and lead concentrate grades average 59.3% and 78.4% respectively.
The two deposits at Polaris host reserves of 13.9 million tonnes grading 14.2% zinc and 3.8% lead per tonne. Last year’s exploration effort at the mine focused on completing the definition of the northern and eastern boundaries of the main orebody. This year, the partners plan to conduct a program on a prospect on Truro Island, 9 km from the mine site.
Pine Point had $8.9 million in cash as at Dec 31, 1988. Cominco remains the company’s largest shareholder with a 50.1% interest.
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