A total of 57,070 oz. gold was produced last year by Canyon Resources (NASDAQ) from the Kendall mine in Montana, an increase of 104% from the company’s gold output in 1990.
This improved operating performance enabled Canyon to report net income of US$2.1 million last year, compared to a net loss of US$5.9 million for 1990. Canyon noted that the 1991 results include an extraordinary gain of US$1.6 million related to a decision to trans-fer its 15% interest in the Beartrack gold project to operator FMC Gold in lieu of repayment of a US$1.75-million obligation.
Canyon produces gold and silver from its Kendall mine, and also produces industrial mineral products from a diatomite facility in Nevada. The company is also involved in an exploration joint venture with Battle Mountain Gold (NYSE) in the Dominican Republic.
The two companies have been exploring the Central American country since 1988. Canyon, which holds a 40% interest in the joint venture, reported a recent gold discovery on the El Higo exploration concession in the Cordillera Central Mountains west of Bonao.
The company says more than 2.5 million tons of mineralized rock averaging 0.15 oz. gold per ton were identified by surface sampling and 30 shallow core holes. The mineralization is open in several directions, particularly at depth, and more drilling is expected to expand the zone of mineralization. The partners plan to spend US$800,000 on geotechnical work, including more drilling and engineering studies, during the next two years. However, these plans are subject to issuance of an exploration concession with “appropriate risk and financial incentives.”
Canyon recently raised US$5.1 million in equity financing to provide capital to continue engineering and permitting activities at its McDonald/Seven-Up Pete gold project in Montana, and the Briggs gold project in California. The equity issue was sold to 22 institutional investors in Europe and North America.
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