Westmin reports third-quarter loss

Lower copper prices and higher operating and exploration costs contributed to a $6.2-million loss for Westmin Resources (WMI-T) during the third quarter.

The loss (equivalent to 12 cents per share) compares with earnings of $3.1 million (3 cents per share) for the same period last year. Low copper prices and higher costs were partially offset by improved grades and process recoveries.

At the Myra Falls copper-zinc operation, near Campbell River on Vancouver Island, Westmin recorded an operating loss of $2.8 million in the quarter, compared with earnings of $3 million a year earlier.

Production at Myra Falls averaged 3,393 tonnes per day, compared with 3,416 tonnes in the third quater of 1995. Unit operating costs increased to $50.90 per tonne, compared with $42.74 last year, reflecting increasing output from the Battle zone, where initial mining costs are comparatively high.

A high zinc grade in the quarter resulted in a dramatic rise in zinc concentrate production — 25,708 tonnes, compared with 16,649 tonnes in last year’s third quarter. Production on copper concentrate was somewhat lower, at 16,593 tonnes, compared with 18,576 tonnes.

Meanwhile, in the Yukon, exploration of the Wolverine polymetallic deposit has resulted in the discovery of a new, multi-lens zone to the west.

On the corporate front, Westmin’s takeover of Gibraltar Mines (GBM-T) is proceeding, with more than 90% of Gibraltar shares having been tendered.

Westmin intends to exercise its statutory right to acquire the remaining shares.

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