Canadian output becoming important to Bond Int’l

Canadian operations contributed a tiny but growing part of the 342,900 oz of gold produced by Bond International Gold for the company’s fiscal year ended June 30. The Golden Patricia mine, which began operations a few months ago near Pickle Lake, Ont., added 1,800 oz of gold to the company’s account. The mine is expected to produce 48,000 oz per year once in full production.

Bond International, which was formed this year via the acquisition of all the gold mining assets of Dallhold Investments Pty, generated sales of $101.4 million(US). Dallhold is the holding company controlled by Australian businessman Alan Bond. For the period, Bond International lost $20.4 million.

The net sales however, only included eight months of production and of that, only six months of production from the new Colosseum mine. The Colosseum, located in California, entered production in early 1988 and is expected to produce 72,000 oz of gold per year.

Bond’s largest and most profitable gold mine is the El Indio in Chile. El Indio is producing at a rate of 239,000 oz per year. Costs average $110 (US) per oz of gold.

Bond is also bringing two mines in the United States into production. In South Dakota the Richmond Hill mine is almost complete and in Nevada, construction is on schedule at the Bullfrog gold mine, Bond says. This new mine output, combined with existing production, is expected to boost the company’s gold output to more than 500,000 in fiscal 1989. By 1991, the company projects production of 842,000 oz, Douglas Silver, director investor relations, says.