Sullivan has loss, blames placer mine

Problems at the Valdez Creek placer mine in Alaska are being cited as the primary reasons behind the 1986 loss at Sullivan Mines. Sullivan and partners have experienced higher operating costs, delays in production and lower grades at the gold project. As a result, loss for the year totalled $687,000 or 8 cents per share. This compares with a profit of $522,000 or 6 cents per share in the previous year.

Bullion revenue increased to $12.8 million. Gold production from the Arthur White mine near Red Lake, Ont., was up by 8.3% during the year. During the year, Sullivan issued 765,487 shares on a flow-through basis which raised $7.5 million. The funds were used to explore the Eldrich-Flavel gold property in Quebec.