A net loss of $1.36 million was reported by Skyline Gold (TSE) for the three months ended Jan. 31, up from the corresponding year-earlier loss of $1.25 million. The quarterly data included operations from Skyline’s Johnny Mountain gold mine in the Iskut River area of northwestern British Columbia. The mine was closed in mid-1990 and placed on a care and maintenance basis. Direct cost of maintenance and preservation at the mine during the quarter was $189,000.
Other costs include $186,000 in general and administrative costs, interest costs of $976,000 and depreciation of $14,000.
As of Jan. 31, Skyline had a working capital deficit of $5 million and long-term debt totalling $22.7 million.
Of the outstanding debt, Placer Dome (TSE) is owed $3 million in loans plus accrued interest, while Skyline President Ron Shon is owed the majority of the balance.
Skyline has a $3.4-million credit facility through Placer. The facility was part of an option agreement signed last year which gives Placer the right to earn a 60% interest in the company’s Reg claims by spending $3.5 million.
The claims include the existing mine area and ground adjacent to the Snip gold project being developed by Cominco Ltd. and Prime Resources Group.
Placer spent about $800,000 on the joint-venture project in 1990, with the best results encountered in the Bonanza zone which is thought to be the possible strike extension of the Twin zone which hosts the Snip deposit.
Shon said Skyline is in discussions with Placer regarding the company’s plans for the property for the coming season.
Skyline’s share price has done well since the beginning of the year, more than doubling to a high of more than $1 before settling at the 90 cents level.
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