EXPLORATION ’95 — Exploration pays off for FirstMiss at

An accelerated exploration program by FirstMiss Gold (NASDAQ) is encountering significant gold mineralization from the Turquoise Ridge deposit at the company’s Getchell mine property, 210 miles northeast of Reno, Nev.

The company spent US$3.4 million to explore the property during the last six months of 1994, which represents a 36% increase over the same period in 1993.

Five of the six holes drilled during the second quarter of 1994 (ended Dec. 31) encountered mineralization better than 0.2 oz. gold per ton, with one hole intercepting 185 ft. of 0.502 oz. at a depth of 1,500 ft. Based on drilling to date and volumetric calculations (assuming 100-ft. radii of mineralization encountered and indicated true width), gold mineralization is estimated at 1.2 million oz., compared with about 1 million oz. in the previous quarter.

The deposit is still open downdip and along strike in both directions. The company notes, however, that drilling from a planned underground access will be required to define the mineralization before a final feasibility study can be completed.

Meanwhile, exploration is continuing to evaluate several other promising oxide and sulphide targets on the Getchell property.

FirstMiss Gold’s operating results are not as encouraging, however. A pretax operating loss of US$2.4 million was reported for the quarter, compared with earnings of US$3.4 million in the same period in 1993. The average cash cost was up 35% to US$354 per oz., and total costs increased 29% to US$411 per oz., as a result of lower production.

Results were affected by milling lower-grade, stockpiled ore to maintain mill feed rates as open-pit mining was limited by underground construction activity in the pit area.

The conversion to drift-and-fill mining was accomplished during the quarter, and the company took over underground mining operations following initial development by a contract miner.

The change in mining method is expected to limit underground production to about 1,000 tons per day, rather than the 2,000 tons initially planned. Lower-grade stockpiled ore will be used to supplement open-pit and underground ores to the mill.