Starrex maintains strong cash position

Last year’s closure of the Star Lake gold mine in northern Saskatchewan was reflected in the 1989 financial results of Starrex Mining (TSE). The company, which holds a 35% interest in the Star Lake mill, reported lower net income for the year ended Dec. 31, of $807,000 ($0.21 per share), compared with net income of $973,000 ($0.24 per share) in 1988.

Operations at the Star Lake mine were terminated last June, following depletion of gold ore reserves at the small underground operation. The mill is currently processing ore from the recently commissioned Jasper gold mine nearby.

The company’s gross revenues for 1989 fell to $2.71 million compared with $4.52 million a year earlier.

At year-end, Starrex had cash and equivalents totalling $4.11 million, compared with $3.37 million at the same date in previous year. The company’s cash flow for the year was $1.33 million ($0.35 per share), compared with $2.35 million ($0.61 per share) in 1988. Starrex Mining (TSE) $000s except per-share items* Year ended Dec. 31 1989 1988 Revenue $2,708 $4,516 Net earnings 807 973

per share 0.21 0.24004