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These results compare with a net loss of US$5.4 million on revenues of US$17.4 million in 2002, based on sales of 57,838 oz. gold and 14,554 oz. silver.
The Briggs open-pit mine produced its 500,000th ounce of gold in July 2003. At last report, the mine has cranked out 513,636 oz. gold and 143,891 oz. silver over its 7-year operating history.
The Briggs mine is expected to produce its last ore from the North Briggs layback in April of this year. Leaching and gold production will continue this year and into 2005.
Canyon had hoped to develop the McDonald gold project in Montana as a replacement, but those plans were shelved when a ballot initiative banning the use of cyanide was brought into effect by the state after passing by a narrow 52-48 margin.
The company responded by filing suit against the state, seeking either to overturn the initiative or obtain a damage award for the lost value of the properties.
In early March of this year, the Montana Mining Association filed a ballot initiative to reform the state’s mining laws. If passed, the law would allow the use of cyanide, but only under a series of new statutory restrictions designed to ensure it is used safely.
The new requirements would require, among other things, that companies build leach pads and ponds to withstand 100-year storm events. Extra precautionary measures would be required for projects near streams or rivers.
If the initiative is approved by the secretary of state and attorney general, the proponents will have to gather at least 20,510 signatures from across the state before the measure can be placed on the Nov. 2 election ballot.
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