With its wholly owned Eskay Creek gold-silver mine in northwestern British Columbia up and running, Prime Resources Group (TSE) is looking to seize opportunities elsewhere in Canada.
Towards this end, Prime, in equal participation with Homestake Mining (NYSE), is conducting an $850,000 program aimed at reviewing potential targets for exploration and acquisition.
Prime spent nearly $70 million to put Eskay Creek into production, and began shipping ore in January. The company is now debt-free.
Eskay Creek is expected to yield about 170,000 oz. gold and 7.3 million oz. silver in 1995. In addition, Prime’s share of production from the nearby Snip mine is expected to total 50,000 oz. gold. (Cominco has a 60% interest; Prime, the remainder.)
As a result, Prime’s total gold and gold-equivalent production for the year is projected to be 320,000 oz. at a cash cost of US$185 per oz. This represents a dramatic rise over the previous year’s output of 51,590 oz.
President Ronald Parker says the company will limit its growth initiatives to Canada and that there is no immediate plan to institute a dividend.
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