Mining firm is thriving in the new economy
Published: Monday, April 28, 2003
SPOKANE -- It may be a relic of the old economy, but Hecla Mining Co. continued an astonishing turnaround in 2002.
The Coeur d'Alene, Idaho-based company produced more gold and silver than ever, and its stock was the second-best performer on the New York Stock Exchange.
Chief Executive Officer Arthur Brown, 62, will retire in May, although he will remain as chairman. President Phillips Baker, 43, will assume CEO duties.
Brown believes Hecla, which has 700 employees, will continue to thrive.
"Hecla has been around for 112 years and along with our skills as underground miners, we have always been known for our honesty, integrity and as dealing fairly with people," Brown, who began with Hecla in 1967, wrote in the annual report released this week.
In 2002, Hecla produced 240,000 ounces of gold and 8.7 million ounces of silver. Income rose dramatically as the prices for gold and silver climbed while Hecla's costs dropped, the company said.
Hecla posted net income for the year of $8.6 million, or 11 cents a share, compared to net income of $2.3 million, or 3 cents a share in 2001. Sales rose from $85 million in 2001 to $105 million in 2002.
Back-to-back profitable years were dramatic improvements from a decade of losses caused by low mineral prices. In 2000, the company lost $92 million.
In 2002, Hecla Mining was the second-biggest gainer on the New York Stock Exchange, rising by 438 percent when the stock reached $5.06 a share. The biggest gainer was a Chinese maker of diesel engines, China Yuchai International, which rose 485 percent to $4.57.
Hecla stock has since settled around $3.40 per share.
Much of the company's financial health can be traced to efficient production. Hecla produced gold for an average cost of $137 an ounce in 2002. Gold this week was selling for $324.
It produced silver at an average cost of $2.16 per ounce, down 39 percent from 2001. Silver sold this week for $4.53.
The company produces silver, gold, lead and zinc at mines in Idaho, Nevada, Alaska, Mexico and Venezuela. It also has an aggressive exploration and acquisition program, after raising $92 million in a January stock offering.
The company will continue to concentrate on silver production, where it is a dominant player, the annual report said.
But the company hopes to double its gold production over the next five years, thanks to the existing La Camorra mine in Venezuela, and exploration and development at the Block B Project in Venezuela and the Hollister Block in Nevada.
Hecla's only mine in Idaho is the Lucky Friday, near Wallace. About 100 workers were laid off and operations were cut back sharply there in 2002, largely because of high production costs for silver. But the Lucky Friday has a vast quantity of minerals left to mine, and rising silver prices would allow the company to ramp up production there, the report said.
Hecla officials were cheered in 2002 by progress in a massive lawsuit against mining companies for historical pollution in the Silver Valley. The U.S. Environmental Protection Agency proposal for a $359 million cleanup over 30 years "will be very manageable," the company said.
Zaruma Resources: Positive Metallurgical Test Results from Alcaravan Gold Deposit, El Foco Project, Venezuela
TORONTO, April 23 /CNW/ - Zaruma Resources Inc. (TSX-ZMR) is pleased to report positive results of metallurgical testing on samples from the Company's Alcaravan gold deposit in Venezuela (El Foco Project). Gold recoveries of more than 90% were obtained in column leach tests from saprolite and laterite bulk samples. Reasonable cyanide and cement consumption, as well as the clean, non- reactive nature of the material tested, supports the viability of recovering gold by agglomerated heap leaching.
The agglomeration and column leach tests conducted by Kappes, Cassiday & Associates, Reno, USA, ("KCA") on one laterite and two saprolite bulk samples provided by qualified geologist Dr. Alfredo Bernasconi, showed excellent gold recoveries: (i) 98% in the case of a light coloured saprolite sample with a head grade of 3.43 g/mt, (ii) 96% in the case of a dark coloured saprolite sample with a head grade of 4.65 g/mt, and (iii) 90% in the case of a laterite-type sample with a head grade of 2.67 g/mt. Dark and light coloured saprolite form the bulk of the oxidized cap of the deposit. According to KCA, gold recoveries from production heaps should be around 92%, based upon the conditions maintained in the test program.
The Alcaravan deposit is shaping up as an excellent model deposit. A Measured Mineral Resource of 1 million tonnes of oxide ore at 2.0 g/mt within an Indicated Mineral Resource of 3.7 million tonnes at 1.4 g/mt is estimated to contain 160,000 ounces of gold, according to independent mining consultant D. Limpitlaw Consulting - Bastillion Ltd., South Africa. An ongoing pit optimization study indicates a potential 0.58 million tonnes of ore to be mined at an average grade of 2.94 g/mt, with an average ore to waste stripping ratio of 1:1.16. If material outside the Measured Mineral Resource, currently classified as part of the Indicated Mineral Resource, is included in the preliminary mine plan, then 1 million tonnes of ore with a mined grade of 2.9 g/mt will yield an estimated 90,000 ounces of gold.
In addition to Alcaravan, there is an excellent resource potential for further saprolitic gold deposits in the 1.8 to +2.5 g/mt grade range in the El Foco concession. Good correlation between soil geochemical gold anomalies, radiometrics, geophysics, structural geology and previous auger and diamond drilling has defined at least 8 more mineralized targets. The Company is currently conducting auger and subsequent infill drilling at key targets to add to the measured oxide resources prior to initiating a feasibility study for the start-up of open pit mining and heap leach operations at the Alcaravan deposit.
At El Foco, Zaruma is concentrating on the evaluation and development of saprolitic oxide gold resources formed on top of primary, mainly shear-zone hosted local gold mineralization. This focus on the top 60 meters of weathered rock, in contrast to the deep drilling approach by previous operators in the region, is confirming a development concept of low cost, open pit mining from a number of nearby satellite pits, feeding oxide ore to a centralized heap leach facility.
Zaruma Resources Inc. is a mineral exploration company listed on The Toronto Stock Exchange and on the Frankfurt and Berlin Stock Exchanges (symbol: ZMR). In addition to El Foco, the Company owns the San Antonio Project in Mexico, where metallurgical tests on oxide and sulphide gold resources are currently being carried out.
For further information: please contact: Zaruma Resources Inc., 20 Toronto Street (12th Floor), Toronto ON, M5C 2B8, Canada Tel.: (416) 777-1781, Fax: (416) 367-3638, email@example.com, www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel.: (416) 777-1781, firstname.lastname@example.org; Frank van de Water, CFO and Secretary, Tel.: (416) 869-0772, Frank.email@example.com
ZARUMA RESOURCES INC. has 30 releases in this database
Gold Reserve Appoints Behre Dolbear to Complete Ore Reserve Analysis
MAR 10, 2003 6:30 PACIFIC 09:30 EASTERN
SPOKANE, Wash.--(BUSINESS WIRE)--March 10, 2003--Gold Reserve Inc. (TSE:GLR.A) (OTC:GLDR.OB) is pleased to announce that Behre Dolbear & Company, Inc. (Behre Dolbear), of Denver, Colorado, has been appointed to perform a mine reserve analysis and long-term production schedule for the Company's Brisas gold/copper project. Behre Dolbear's study is expected to reflect the improved economic impact to the Brisas project as a result of the recent increase in the price of gold.
Behre Dolbear's reserve analysis should be complete in early May and the results will be incorporated into the final feasibility and economic analysis of the Brisas project.
Behre Dolbear was selected, in part, because of their familiarity with the Brisas project, as they have previously conducted three audits on the project: they have verified our database by drilling independent holes and verifying that our sampling and assaying procedures have met or exceeded industry standards, have verified that our ore reserve methodology is sound, and have confirmed earlier resource and reserve computations by the Company.
Gold Reserve's Brisas project in southeastern Venezuela currently contains a resource of 9.9 million ounces of gold with proven and probable reserves of approximately 6.67 million ounces of gold and 871 million pounds of copper.
The Company has approximately US$12.5 million in cash and investments, no debt, and no gold hedging. The Company has 24.3 million shares outstanding backed by 0.27 ounces of gold reserves per share, which is one of the highest in the industry, providing the Company tremendous leverage to a rising gold price. Based upon the current share price, these ore reserves are valued at approximately US$4.50 per ounce in the ground net of cash.
The information presented herein or incorporated by reference may include both historical information and "forward-looking statements," relating to the future results of Company, which involve risks and uncertainties. Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the risk that actual reserves may vary considerably from estimates presently made, the impact of metals prices and metal production volatility, our concentration of operations and assets in Venezuela, regulatory, political and economic risks associated with Venezuelan operations, our ability to obtain additional funding for any future development of the Brisas property, and the risks normally incident to the operation and development of mining properties.
CONTACT: Gold Reserve Inc., Spokane
A. Douglas Belanger, 509/623-1500
KEYWORD: WASHINGTON COLORADO VENEZUELA INTERNATIONAL LATIN AMERICA
INDUSTRY KEYWORD: MINING/METALS
SOURCE: Gold Reserve Inc.
Will be Displaying its Mining Activities During the Upcoming PDAC
Crystallex International Corporation will be displaying its mining activities during the upcoming Prospectors and Developer's Association of Canada annual convention (PDAC) and would like to extend an invitation to its shareholders to visit the Company at Booth number 2214 in the Investors Exchange.
Crystallex is currently building on the strength of its strategic acquisitions over the past several years, which now include its recently executed mining agreement for the Las Cristinas properties in Venezuela. The Company is focused on building both its mining infrastructure and human resources to position it as an emerging intermediate gold producer.
Senior management will be available at its booth to discuss the Company's projects. The PDAC will be held at the Metro Toronto Convention Center in Toronto, Ontario from March 9 through March 12, 2003. Admission to the Investors Exchange area of the convention is free of charge.
Information on the conference can be viewed at www.pdac.ca
About Crystallex: Crystallex International Corporation is a Canadian based gold producer with operations and exploration properties in Venezuela and Uruguay. Crystallex shares are traded on the TSX and AMEX Exchanges and Crystallex is part of the S&P/TSX Composite Index, the most widely followed benchmark index in Canada. Crystallex has been focused on strategic growth in South America and recently signed a definitive agreement with respect to the Las Cristinas mining properties in Venezuela and has taken possession of those properties. Crystallex is currently reviewing drill data and studies previously completed in preparation for the completion of a feasibility study to support its development plans for the properties.
Crystallex International Corporation Quick Quote:
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CONTACT: TEL: 1-800-738-1577 Crystallex International Corporation
Crystallex Closes Private Placement
Press Release Source: Crystallex International Corporation
Wednesday March 5, 12:31 pm ET
TORONTO, March 5 /PRNewswire-FirstCall/ -- Crystallex International Corporation (Amex: KRY; Toronto) confirmed today that it has closed the private placement of 2,562,500 special warrants at a price of C$1.60 per special warrant raising gross proceeds of C$4.1 million. Each special warrant shall entitle the holder thereof, upon exercise and without payment of any additional consideration, to acquire one common share and one-half of one common share purchase warrant of Crystallex. Each whole purchase warrant is exercisable for one common share for a period of two years after issuance at a price of C$2.00 per share.
The securities have not been and will not be registered under the United States Securities Act of 1933 or the securities laws of any state, and may not be offered or sold in the United States or to US persons unless an exemption from registration is available.
Proceeds from the offering will be used by Crystallex to finance the continued development of its gold properties in Venezuela and for general working capital purposes.
Crystallex International Corporation is a Canadian based gold producer with operations and exploration properties in Uruguay and Venezuela. Crystallex shares are traded on the TSX and AMEX Exchanges and Crystallex is part of the S&P/TSX Composite Index, the most widely followed benchmark index in Canada.
Note: This news release may contain certain "forward-looking statements" within the meaning of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Crystallex, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" and elsewhere in documents filed from time to time with the Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities. The Toronto Stock Exchange has not reviewed this release and does not accept responsibility for the adequacy or accuracy of this new release.
Source: Crystallex International Corporation