Michael Markham
9mo results
Wheaton River Minerals Ltd WRM
Shares issued 30,390,348 Oct 27 close $0.35
Tue 28 Oct 97 News Release
Mr Ian McDonald reports
Net earnings were $1,789,094 or $0.05 per share for the nine months ended
September 30 1997 compared to a loss of $2,098,966 or $0.07 per share
during the same period in 1996. Sales from the Golden Bear mine commenced
during the third quarter and resulted in earnings from mining operations of
$2,637,370 for the current year to date. As a result of its recent bank
loan to finance the Golden Bear mine, the company incurred interest and
financing expense of $1,463,851 in 1997. General and administrative
expenses of $1,228,847 decreased by $98,007 in 1997 compared to 1996. The
start of operations at Golden Bear during 1997 reduced suspended operations
expense to nil from $1,155,897 in 1996. Other income of $1,936,850
increased by $1,441,459 in 1997 compared to 1996. This increase was largely
due to a gain on the sale of the company's majority interest in YGC
Resources.
Wheaton River's Golden Bear heap leach mine was successfully commissioned
during the third quarter of 1997. This achievement is a result of the
dedication and hard work of the operating staff at Golden Bear. Gold
production substantially exceeded expectations. The first season of
operations at the Golden Bear mine saw production of 30,600 ounces of gold
exceed plan by 19%. The average grade of the 360,000 tonnes of ore stacked
on the heap leach pad, at 3.47 grams gold per tonne, surpassed feasibility
projections by about 16%.
Mining of the Kodiak A deposit ended for the season in mid-September.
Production from the first leach pad and pre-stripping of the Ursa deposit
continued into mid-October. Another 168,000 tonnes of Kodiak ore will be
placed on this pad next June. The liner for the second leach pad was
installed during the quarter and is ready for stacking when mining and
processing resumes next spring. Golden Bear's production is expected to
increase to 43,000 oz next year. More than 80% of the currently planned
five year production has been sold forward at US$379 per ounce, while cash
production costs are expected to average US$232 per ounce. Capital startup
costs to September 30 totalled C$5.3 million and a further C$5 million will
be spent over the life of the mine.
Wheaton River completed the acquisition of the Bellavista gold project in
Costa Rica from Minera Rayrock. In return for the project, the company
issued two million special warrants convertible into common shares and two
million share purchase warrants exercisable at $1 per share for a period of
five years. In addition the company paid Rayrock C$100,000 and will pay a
further C$1 million when the project goes into commercial production.
Bellavista's current mine plan contains a diluted, proven and probable open
pit reserve of 8.7 million tonnes grading 1.70 grams gold per tonne, or the
equivalent of 472,400 ounces of contained gold. The reserve is at surface
and can be mined from an open pit at a strip ratio of about 1.2:1. A
separate, higher grade resource, which remains open in two directions, is
estimated to contain 3.6 million tonnes grading 3.28 grams per tonne, or
the equivalent of 380,000 ounces of gold. This resource is potentially
mineable by bulk underground methods.
Wheaton River intends to complete a bankable feasibility study on
Bellavista by late 1998. In preparation for the study, the company will
extend the adit leading into the underground resource and complete 7,800
metres of underground infill drilling to upgrade the resource to reserve
status. McClelland Laboratories will complete metallurgical testing on a
five tonne bulk sample from the existing underground workings. Early
indications from that testing indicate the ore can be heap leached at an
acceptable recovery level. Based on current data, Wheaton River believes
that roughly 700,000 oz of the known reserves and resources at Bellavista
will be placed into the feasibility study mine plan.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
regards
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