Dickenson moves back into black

After a $47.9-million writedown in 1990, Dickenson Mines (TSE) regained its feet in 1991.

Revenues generated from the Arthur W. White gold mine at Red Lake, Ont., Havelock Lime in New Brunswick and Saskatchewan Minerals (sodium sulphate) totalled $61.5 million. Together with the $873,000 received from Wharf Resources (TSE), representing Dickenson’s 36.2% interest in the company, total earnings amounted to $7.5 million compared to a loss of $48,872 in 1990. Gold output at Red Lake was 74,605 oz. (76,644 oz. in 1990) at a cash cost of $397 per oz. ($435 in 1990). Proven and probable reserves at the end of 1991 totalled 3.2 million tons grading 0.32 oz. per ton; reserves in the possible category totalled another 1.1 million tons.

Chairman Robert McEwen, speaking at the company’s recent annual meeting, said the mine would be losing money but for the margin created by gold hedging contracts.

“Every effort is being made to reduce costs and there has been a significant improvement in the last 18 months,” he said. “The target for 1992 is $390 per oz. and the long-term objective is to bring costs to below $350 per oz.” Mill recovery was 80.4% (83.9% in 1990), reflecting the increasing proportion of refractory ore mined in 1991. Test work on bacterial and pressure oxidation continues but no firm date was announced for deciding which, if either, process will be used to improve metal recoveries.