Breakwater shows a profit after production increase

After a 40% production increase and a 30% hike in the price of gold, Breakwater Resources has broken out the black ink to record its financial results for the first nine months of 1987.

Vancouver-based Breakwater reported earnings of $2,842,000 or 13 cents per share for the nine month period ended Sept 30, 1987 compared with a loss of $749,000 or 4 cents per share during the same period last year.

According to Breakwater, the Cannon Mine joint venture produced 98,929 oz gold and 123,840 oz silver from mill feed totalling 348,862 tons during the recent nine- month period.

The average cash operating cost per oz was $150(US). During the 1987 third quarter, Breakwater said it produced 32,465 oz with a recovery rate of 92.4%.

In addition to the new B-4 zone, discovered in late 1986, a new B-Tween zone was identified recently by the Cannon Mine joint venture. “Drilling continues in these two areas which will add considerably to the reserve base,” said Breakwater President Brian Pewsey.

According to Pewsey exploration at the company’s Vanguard claims in Montana was sufficient to justify a drill program in early 1988.

“The Rundle gold project is progressing with all surface facilities including a head frame, hoist and maintenance camp units, already complete. ewsey said a decline ramp has been driven to 2,346 ft and assays from two bulk samples average 0.31 oz gold per ton over 115 ft and 0.23 oz over 116 ft.

According to the company, these results confirm a geological interpretation of the previously drilled B North zone. Shaft deepening from 300 ft to 800 ft has commenced and metallurgical testing shows recovery rates between 92% and 95%.

At the Dufferin mine where Breakwater is involved in a joint venture with Albert-listed Jascan Resources, seven drill holes of a second drill program have been completed.

The initial drill program outlined 1,800 ft of strike length with 15 of 19 holes intersecting 0.2 to 0.3 oz over a minimum 5 ft width.

In other news, drilling at the Tonawanda joint venture with St. Joe Canada, has outlined drill indicated reserves of 935,000 tons grading 0.15 oz. The joint venture is currently sinking a decline to confirm continuity of grade in preparation for an open pit feasibility study.