Cons. Nevada eyes new properties

The objective of Peter Bojtos, president of Consolidated Nevada Goldfields (TSE), is to make his company grow through property acquisitions.

Bojtos was in Toronto recently presiding over Consolidated Nevada’s annual meeting. Formerly vice-president of corporate development for Kerr Addison Mines (TSE), he was appointed to his present position in June. Consolidated Nevada operates two small gold mines, one in Nevada and the other in South Carolina. Production for 1993 is estimated at 36,000 oz. gold, compared with actual production for 1992 of 28,132 oz. and for 1991 of 13,968 oz. (the company’s year-end is June 30).

“We currently have two properties under examination, one is in Arizona, the other in Nevada,” Bojtos said. “We won’t be making any announcements until all our test data have been analyzed.”

Largest shareholder in the company is Gwalia Consolidated of Australia, with 68.1% of the 11.4 million shares outstanding.

The Aurora property in Nevada has historically developed a number of relatively small epithermal vein deposits. Present reserves are 439,000 tons grading 0.15 oz. gold per ton. A small volume of the ore is mined from shallow underground workings but the bulk is recovered by open-pit mining. Mill capacity is 240 tons per day and a US$500,000 expenditure will see an increase to 390 tons per day in the second quarter of the current fiscal year. The Barite Hill mine in South Carolina is an open-pit, heap-leach operation. Present delivery of ore to the leach pad (all the ore is agglomerated) is 71,700 tons per month and is scheduled for 82,700 tons per month later this year. Diluted reserves (proven and probable) are 1.44 million tons grading 0.038 oz. The bulk of the ore is oxidized but some is classified as sulphide. Overall cash cost in fiscal 1992 was US$256 per oz. gold (both properties) while the company realized an average US$434 through its hedging contracts. All of the company’s 1993 production is hedged at US$387.