Profit uptrend for Dickenson

The uptrend in earnings of Dickenson Mines continues, with net for the nine months ended Sept 30 ahead to $4,981,000 or 34 cents per share, up from $2,783,000 or 25 cents a share for the same period last year. Net revenues reached $32,069,000 compared to $27,084,000.

But actual gold output from its Red Lake operation was off a bit, reflecting a labor strike in June and a shortage of skilled miners in that area. The Arthur W. White mine there yielded 47,300 oz in the period, of which Dickenson’s portion amounted to 30,700 oz, the balance accruing to joint venture partner Sullivan Mines Inc.

Dickenson recently raised its ownership in this mine to 66% by acquiring the 1% interest held by Wm. G. Brissenden Inc. through the issuance of 115,000 Class B treasury shares. Discussions have commenced with the owners of the remaining 34% regarding a possible acquisition of their interest, says J. O. Kachmar, Dickenson’s president and chief executive officer.

There is more good news, too, from the continuing deep ore developments at Red Lake, where a highly promising ore picture continues to unfold in the new hangingwall zone that was picked up on the 30th level (N.M., Sept 29/86). Drilling here has just defined a new zone with a strike length of at least 100 ft that averages 1.12 oz per ton across an average width of 12 ft, the vertical dimension of which has not yet been tested.

This latest development is somewhat different from the normal gold occurrences in this mine, with the gold contained in a carbonate rock unusual to Dickenson but frequently found in the adjoining Campbell mine.