Cash flowing from Myra Falls mine

The Myra Falls underground zinc-copper mine on Vancouver Island is spinning out cash for owner Westmin Resources (TSE).

Net income for the first nine months of 1995 amounted to $10.8 million on revenue of $90.4 million.

Cash flow for the period was $28.05 million.

The operation milled 314,226 tonnes in the third quarter, bringing 9-month production up to 937,356 tonnes.

Cash operating costs at the mine averaged $42.75 per tonne in the third quarter and $43.88 per tonne for the year.

Westmin reports that increased millfeed from the Battle zone boosted the average zinc grade by 27% from the second quarter to 3.19% in the third quarter, while the average copper grade declined to 1.77%.

As of Sept. 30, Westmin had $14.1 million in working capital and $128 million in long-term debt.

The debt includes $42.7 million in coal royalty notes, which have recourse only to Westmin’s coal assets.