Camindex still in arrears at Valdez Creek project

A production shortfall at Camindex Mines’ Valdez Creek placer gold mine in Alaska, continues to cause financial headaches for the Toronto-based company.

In 1986, ground water flow problems disrupted a mining plan which called for 40,000 oz in annual production and put Camindex behind in its financial obligations to the project which is owned jointly by Camindex, American Barrick Resources and Cambior Inc.

Even though operations resumed in July following a complete review of the project, Camindex is currently negotiating additional financing to resolve this situation, said President Richard Brissenden.

Camindex reported a net loss for the year ended Dec 31 of $5.1 million or 28 cents per share compared with $8.2 million or 48 cents per share during the same period in 1986.

After a $1.24-million fourth-quarter write down on surplus mobile equipment at Valdez Creek and a 50% interest in a California gold project, Camindex reported $657,079 (35 cents per share) in net earnings for the three months ended Dec 31.

That compares with a $3.7 million (21 cents per share) net loss for the same period last year.

Cash losses from operations in 1987 were $2.01 million (11 cents per share) compared with $6.7 million (39 cents per share) in 1986, said Camindex.

However, production at Valdez Creek increased from 16,800 in 1986 to 32,440 on Dec 31. Production at the Alaska placer operation is expected to be approximately 56,000 oz in 1988.