New TVX management pursuing acquisitions

Less than a year into its mandate, TVX Gold (TSE) is wasting no time as it pursues mining opportunities.

At the annual meeting in Toronto, Chairman Eike Batista told shareholders and analysts that the company is looking to double, or even triple its size. Already the largest gold producer in South America, TVX recently carried out sampling on more than 3 million hectares in Brazil and is working on 10 potential deals in that country. At present, about 35% of the company’s annual production of nearly 440,000 oz. gold and gold equivalent comes from its interest in three Brazilian mines: Crixas, Brasilia and Nova Astro. Batista also believes the Pachicutza project in southern Ecuador will eventually be a major mine for the company. Previous work has identified major gold-bearing structures in both skarn and porphyry-type deposits. Batista said the property has the potential to yield a 3-million-oz.-plus gold orebody.

Here in Canada, the company is pinning its hopes on the Musselwhite property in northwestern Ontario and the Snow Lake project in northern Manitoba. At 32%-owned Musselwhite, operator Placer Dome (TSE) is accelerating exploration in order to advance the project to the feasibility stage by early 1995. Current resources are estimated at 4.6 million tons grading 0.28 oz. gold per ton.

TVX can earn a half interest in High River Gold’s (TSE) Snow Lake project in return for transferring back to High River the 32% equity interest that it currently owns. TVX must also finance and bring the deposit into production by Dec. 31, 1995. The deposit is expected to yield 100,000 oz. gold per year. In other news, TVX reported earnings of US$3.3 million (US2 cents per share) for the first quarter, compared with US$2 million (US2 cents per share) in the first quarter of 1993. The increase resulted from higher realized revenue per gold equivalent ounce, reduced interest expense and interest earned on proceeds from the aformentioned equity offering.