The opening in 1995 of the Eskay Creek mine in northwestern British Columbia boosted net earnings of Prime Resources Group (TSE) to $36.5 million, up from $7.1 million in 1994.
Cash flow for the period (before changes in working capital) totalled $88.1 million.
Prime’s balance sheet is in excellent shape, with more than $90 million in working capital and no long-term debt following the first year of production at Eskay Creek
Mine production in 1995 totalled 196,544 oz. gold and 9.9 million oz. silver at a gold-equivalent cash cost of US$185 per oz. The mine processes no ore on site but ships it directly to smelters in Japan, Quebec and Mexico.
Prime also owns a 40% interest in the nearby Snip mine, which netted the company 51,310 oz. at an average cash production cost of US$175 per oz.
As of Jan. 1, 1996, proven and probable reserves at Eskay Creek were estimated at 1.1 million tons grading 1.88 oz. gold and 83.4 oz. silver per ton. Prime’s 40% interest in proven and probable reserves at the Snip mine amounts to 153,000 tons grading 0.78 oz. gold.
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