Wheaton River runs red

Slipping revenue and sluggish season-opening production from the Golden Bear heap-leach gold mine in northern British Columbia combined to keep Wheaton River Minerals (WRM-T) in the red in the latest quarter.

Second-quarter revenue was down sharply to $893,345, from $2.9 million a year earlier.

In the first half of 1999, the company lost $714,166 (2 cents per share), compared with a year-ago loss of $519,299 (1 cents per share).

In the same six months, earnings from mining operations were $308,276, compared with $474,068 in the first half of 1998.

First-half revenues were affected by the time required at the beginning of the season to complete the new Totem Creek heap-leach pad and gold recovery plant, which is expected to handle almost the entire year’s production.

Wheaton has an 87% interest in the seasonal Golden Bear project. Its operations there resumed in early May, and 59,000 oz., at a cash cost of US$203 per oz., are expected to be produced before operations are suspended again in the fall.

The company has sold forward 54,000 oz. of its 1999 production at a price of US$302 per oz.

Meanwhile, exploration aimed at increasing the oxide reserve base at Golden Bear has been continuing.

In Costa Rica, the company continued efforts to obtain permits and funding to begin building the Bellavista gold mine. Cost-benefit analysis indicates that a gold spot price of US$295 per oz. is required to secure the financing.

Kit Resources (KIT-T), in which Wheaton has a 23% interest, entered into an option agreement regarding its George Lake project with Kinross Gold (K-T). Kinross can earn a 70% interest in the property by spending $20 million over five years. Drilling is slated for next spring.