Westmin Resources returns to profitability at Myra Falls

The first quarter of 1995 marked a return to profitability for Westmin Resources (TSE).

The company earned $5.25 million on revenue of $31 million during the period. Cashflow from operations jumped to $10.5

million from a deficit of more than $4.6 million in the first quarter of 1994, when operations at the Myra Falls polymetallic operation were affected by a labor dispute.

The dispute started in April, 1993, with the lockout of unionized employees and was finally settled by arbitration in August of the following year.

Cash production costs at Myra Falls dropped to $44.70 per tonne in the recent first quarter, representing a 30% decline from levels experienced over the past three years. The operation

milled 302,964 tonnes grading 2.23% copper and 1.86% zinc during the period.

The drop in operating costs, combined with strong base metal prices and an increase in grades, bodes well for the future

performance of the Myra Falls operation.

The company is focusing its efforts on developing the zinc-rich Battle zone, which contains proven, probable and minable reserves of 2.5 million tonnes grading 10.6% zinc, 2% lead, 20.3 grams silver and 1 gram gold per tonne. Westmin started milling ore from this zone in April.

As of Dec. 31, 1994, Westmin had $5.3 million in working capital, $119.6 million in long-term debt, $73 million in preferred shares (8.5% dividend) and 47.1 million common shares outstanding.

The company also operates a custom gold-milling operation near Stewart, in northwestern British Columbia.