Canada Tungsten profits from sale of assets

Proceeds from the sale of non-core assets put Canada Tungsten (CTG-T) in the black for the first half of 1996.

For the six months ended June 30, CanTung netted $700,000 (or 2 cents per share) on revenue of $1.8 million, compared with a loss of $1.1 million for the same period in 1995.

During the half, the company sold the Kremzar gold properties and mill for $3 million plus a net smelter return royalty. A production royalty on the Ketza River mine and a warehouse in Smithers, B.C., were also sold.

At June 30, working capital stood at $2.4 million and long-term debt related to development of the Andacollo copper mine and solvent

extraction-electrowinning plant in Chile was $31.5 million.

Andacollo, a 70-30 joint venture between CanTung and Compania Minera del Pacifico, is expected to produce its first copper cathode in November. Mining is already under way and ore is being loaded on the leach pads.

The open pit mine, where minable reserves stand at 33.4 million tonnes grading 0.74% copper, is expected to produce 44 million lb. copper per year at an average cost of US56 cents per lb.

Earlier this year, a loan guarantee from Aur Resources (AUR-T) allowed CanTung to secure US$57 million in bank project financing for Andacollo. Aur has a 48% stake in CanTung.

CanTung is also proceeding with exploration around Andacollo and on the Golden Highway project in northern Ontario. At Golden Highway, a $1.2-million drill program operated by joint-venture partner Battle Mountain Gold, has failed to uncover any economic-grade mineralization thus far.