A writeoff of $4.3 million was declared by Rouyn Mining Resources (TSE), which for 1990 reported a loss of more than $4.9 million (42 cents per share). The company said the writeoff reduces the book value of its Francoeur gold property to $7.3 million.
Rouyn claimed gold revenue of $2.7 million for last year, $1.6 million of which came from ore development. Investment development expenses in 1990 totalled $3.6 million.
President Jean-Guy Rivard said the company is debt free. Cash (and cash equivalents) at the end of 1990 stood at $3.7 million, compared with $5.2 million a year earlier. The cash reduction, he said, is attributed to investments in development costs.
The Francoeur mine project is owned 50-50 with LAC Minerals (TSE). The companies have budgeted $6.5 million for development work for 1991.
Rivard said the major part of the 1991 expenses will be paid for through the sale of 15,000 oz. gold produced mainly from ore development. The work, he said, will enable a mining production rate of 1,000 tons per day during 1992.
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