Giant’s deal with Pamour increases gold output (April 20, 1987)

Giant had earnings of $3.8 million, or 89 cents a share in 1986, compared with income of $5.7 million or $1.32 a share, in the previous year. The company says the decreased earnings last year reflect higher operating costs due to shaft- sinking and depth development at its Salmita division, and increased open pit work and satellite mine development at Yellowknife.

Consolidated gold production decreased 15,730 oz from 1985 levels, as a result of treating lower grade ores at Salmita from an open pit on the Red 24 claim, from some of the stockpiles and from stopes below the eighth level. However, higher gold prices in 1986 more than offset the lower production.

Acquisition of Pamour Inc.’s Timmins mining operations in northern Ontario was completed earlier this month by Giant Yellowknife Mines.

Giant, which is 50.2% owned by Pamour, now has a combined annual gold production in excess of 200,000 oz from the Timmins and Yellowknife, N.W.T., mine operations.

Giant has also acquired Pamour’s 36.7% shareholdings in Akaitcho Yellowknife Gold Mines, increasing to 44.5% Giant’s share interest in Akaitcho. Akaitcho’s principal asset is a 49.9% interest in Supercrest Mines, which owns a gold mine adjacent to Giant’s Yellowknife operations. Giant is the operator of the Supercrest mine and holds the remaining interest in Supercrest.

Pamour has announced completion of the sale to ERG Resources of its 50% interest in the Timmins Tailings Reclamation Project. Erg has acquired Jimberlana Holdings (Canada) Corp.’s interest in tailings at Kirkland Lake, Ont.

Erg, 66.6% owned by Pamour, has acquired all of the issued shares of Lorncor Inc., which holds a consulting contract with erg for the development of the Timmins tailings project.

Tendering his resignations earlier this month as an officer and director of Pamour, Giant and erg was Dennis MacLeod. Mr McLeod was chairman of the board of Giant and eeg and president and chief executive officer of Pamour.

Ronald Sweetin, vice-president of Pamour and president and a director of erg, has been appointed Pamour’s acting president and chief executive officer.