Record Trout Lake production boosts Manitoba balance sheet

Record production from Manitoba Mineral Resources’ Trout Lake mine and a reduction in exploration expenses during l986, necessitated a splash of black ink on the company’s balance sheet.

The Manitoba governmentowned company reported net income for the year of $1,042,492 compared with a net loss of $533,244 during the same period last year.

According to Manitoba Mineral Resources’ l986 annual report, much of the credit must go to a larger loading and haulage system which assisted in record production from the Trout Lake project and the lowest unit operating costs ($28.01 per ton) in the history of the mine.

Located northeast of Flin Flon, Man., Trout Lake is a joint venture owned by Hudson Bay Mining and Smelting Co., (44%), Manitoba Minerals (27%), Granges Exploration (19.8%) and Outokumpu Oy (9.2%).

As mine operator, Hudson Bay has signed an agreement which requires it to mill the partners’ share of ore production during the life of the mine.

Manitoba Minerals’ share of ore produced from the Trout Lake mine during 1986 was 172,910 tons grading 2.26% copper, 4.27% zinc, 0.053 oz gold and 0.40 oz silver.

The company’s share of production is forecast to rise to 202,500 tons in l98 7 as a result of using larger loading and hauling equipment for a 12-month period. Reserves on the Trout Lake property currently stand at 1,236,600 tons grading 2.28% copper, 7% zinc, 0.057oz gold and 0.54 oz silver.

During 1986, Manitoba Minerals spent $2.6 million to conduct exploration work on 58 projects. In addition to Trout Lake, they include a joint venture (Manitoba Minerals 55.2%) with Hudson Bay Exploration and Development (44.8%) on the Farley Lake gold project near Lynn Lake, Man.

Manitoba Minerals has started a major drilling program on the property to upgrade proven and probable reserves which stand at 1.2 million tons grading 0.186 oz gold per ton.

A production decision on the Farley Lake project is expected by early next year.

With cash flow of $3,142,885 for the l986 fiscal year compared with $2,570,197 in l985, Manitoba Minerals says it will spend $1 million on a Farley Lake diamond drilling program. The company is also planning to spend $4.6 million on shaft and drilling work at the Trout Lake venture over a 3-year period.