Terra Mines defers Bullmoose decision

A net loss of $13.9 million has been reported by Terra Mines for 1986, compared with a net loss of $1.9 million for the previous year.

Of the 1986 total, a writedown of the Bullmoose Lake gold property in the Northwest Territories and related deferred exploration and development costs accounted for approximately $12.5 million.

For the year ended Dec 31, Terra reported working capital of $3.9 million and total assets worth $12.7 million.

After studying the results of its 1986 exploration program (flow- through financing was used to raise funds) at the Bullmoose property, Terra decided not to proceed to production at the present time because “the risks associated with a narrow vein property in a remote location are too significant and production, given current grades and a lack of significant tonnage per vertical foot, could lead to financial disaster,” according to the company’s annual report.

The company did not realize “significant income” from its investment in the Strachan Leduc gas field in 1986; however, Terra feels the investment will pay off in the near future.

Company interests in Mexico include old silver mines in the Alamos area and properties in the Las Minitas area which have been producing small amounts of gold for years.

Terra earlier this year became a 40% owner of a Mexican firm, Minera Las Minitas, with Industrias Penoles, a Mexican-based mining company, holding the other 60%. Terra and Penoles last September signed an agreement dealing with exploration of properties in the Las Minitas area.

Also last year Terra acquired a position in Lightning Minerals, the two firms reaching an agreement whereby Lightning took over a group of gold claims at Dome Lake, N.W.T., in return for $65,000 cash and 500,000 common shares of Lightning.

An exploration program last year on those northern claims identified five veins with ore-bearing potential; a drilling program is currently in progress there.

Resigning in January of this year was President Bill Kocken.