Mascot on target in B.C. converts part of financing

Work is progressing on schedule for the July, 1987, start-up of Mascot Gold Mines’ Nickel Plate open pit gold project, reports Chairman Peter Steen.

The tailings dam is complete and the new power supply is in place on the Hedley, B.C., site. And cold weather is not expected to cause any delays as all buildings have been erected and cladding is near completion.

A portion of the company’s previously announced $70-million project financing with the Canadian Imperial Bank of Commerce has been converted into a gold loan, says Mr Steen.

Under this gold loan facility, Mascot has borrowed 100,000 oz of gold for a term of 18 months at which time the gold has to be returned. Interest is 3% per year.

Mascot has sold the gold at $409.80 per oz and thereby has realized proceeds of $56.901 million.

Initial annual gold output at Nickel Plate is estimated to be 140,000 oz. Open pit reserves stand at 7.1 million tons at an average grade of 0.15 oz gold per ton, enough for eight years production at full capacity. Those known reserves will yield about 900,000 oz of gold at an estimated average cost over the 8-year period of about $120(US) per oz.

Mascot, which is listed on the Toronto and Vancouver Exchanges is a subsidiary of Royex Gold Mining and is the exploration arm of the International Corona Resources group of companies.