The Homestake mine in South Dakota produced 13% more gold in 1993 than in the previous year. Indeed, at 447,600 oz., the operation enjoyed its highest level of production since 1971.
Homestake Mining (NYSE) attributes the increase to three factors — a revised mine plan, a grade control program and improvements in safety — all of which contributed to higher mine grades and greater productivity. Cash operating costs were reduced to US$268 per oz.
In 1993, the company produced a total of 1.9 million oz. from all operations at an average cash production cost of US$231 per oz. (Homestake’s share of gold production from two mines at Hemlo, Ont., dropped slightly to 364,800 oz.) This year, the company expects to produce 1.7 million oz. Homestake is the major shareholder of Prime Resources Group (TSE), which reported net income of $4.6 million in 1993. This compares with income of $3.7 million for the nine months ended Dec. 31, 1992.
Prime has a 40% interest in the Snip gold mine in northwestern British Columbia, which turned out 149,475 oz. gold last year at a cash cost of US$152 per oz. Prime’s share of 1993 production was 59,790 oz. In 1993, Prime recorded exploration and development expenses of $4.9 million, which were related to the Eskay Creek gold project in northwestern British Columbia. The project is currently in the mine permitting phase.
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