Mining resumes at Golden Bear
Wheaton River Minerals Ltd WRM
Shares issued 30,390,348 May 27 close $0.35
Thu 28 May 98 News Release
Mr. Ian McDonald reports
The seasonal Golden Bear mine in northwestern British Columbia has reopened
slightly ahead of schedule. Leaching of the residual gold in the leach pad
has begun, and the first gold bar will be shipped in mid-June. Mining in
the Kodiak A pit has also resumed.
As previously announced, Wheaton River revised its original mining plan by
opting to defer completion of the second heap leach pad at Golden Bear
until 1999. Production is targeted at 25,000 ounces in 1998 but a review is
under way which may increase this year's production without the use of the
second pad. The board of directors feel that while it is important to
maintain continuous production at Golden Bear, the poor market for gold
makes it prudent to keep some of the gold in the ground. The lower 1998
production rate will not increase life-of-mine production costs. Wheaton
River expects total cash costs this year of $236 (U.S.) per ounce, compared
with an average of $206 (U.S.) over the remaining life of the mine.
In preparation for stacking ore on the second heap leach pad in 1999, a new
gold recovery plant was largely completed during the past winter. Wheaton
River plans to truck the plant components to the Golden Bear site this
summer.
Wheaton River has awarded the contract for the infill-drilling program at
the Bellavista gold project in Costa Rica to Advance Drilling of Surrey,
British Columbia. The drilling program is being conducted as part of a
bankable feasibility study, which should be completed in early 1999.
Wheaton River had a net loss of $304,000 or 1 cent per share during the
first quarter, compared with a loss of $451,000 or 1 cent in the first
quarter of 1997. As the Golden Bear mine is a seasonal operation, there was
no production during either period. Wheaton River ended the quarter with
cash of $8.6-million, compared with $1.2-million a year earlier. |
