Falconbridge Gold posts quarterly loss, plans to focus on

At its annual meeting in Toronto, Falconbridge Gold (TSE) reported a loss of $343,000 (2 cents per share) in the first quarter compared to earnings of $802,000 (5 cents per share) in the same period last year.

The results reflect a decrease in gold production at the Hoyle Pond mine near Timmins, Ont. Since February, 18,300 tons of ore grading 0.48 oz. per ton have been stockpiled at the mine. Milling at the Bell Creek complex is expected to resume in late May and continue until November. Processing of stockpiled ore should have a positive impact on third-quarter results. In 1992, the Timmins operations produced 64,022 oz. gold at US$262 per oz. About 92% of that was from Hoyle Pond, with the remainder coming from Bell Creek, which was closed in December because of sub-economic grades. President Brian Ferguson told shareholders the company will maintain its Canadian operations but that in 1993 it will focus on Zimbabwe, where it operates the Blanket and Golden Kopje mines.

Last year, Blanket produced some 18,000 oz. gold at US$222 per oz. Deep drilling to prove up additional reserves is expected to be completed later this year. Proven and probable reserves total 1.3 million tons at 0.13 oz. Directors have approved an additional US$3.5 million in financing for surface installations and underground development at Golden Kopje, where proven and probable reserves are 466,000 tons grading 0.16 oz. gold.